FPS Allotment

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Allotment of FPS

There is a separate procedure for allotment for Fair Price Shops in Rural and Urban areas. In rural areas, Gram Sabha in an open meeting decides as to whether a fair price shop is required in that village or not.  The assistant BDO acts as observer in the meeting.  The Gram Sabha decides and nominates the person for running the fair price shop. Once a nominee is selected, then the said candidate approaches the Sarpanch and Assistant BDO to get necessary certificates. The papers are then forwarded to the BDO who forwards the same to DSO. The DSO finally checks the character certificate and financial situation of the person so recommended. The DSO then forwards it to the District Magistrate who passes the order and also collects a deposit of Rs. 250/-  as a security for the licence.

In urban areas, a vacancy of opening of a new fair price shop is normally notified if there are 4000 units .Once a vacancy of a fair price shop is determined, an advertisement is published in the newspaper inviting applications. Once all the applications are received the circle supply inspector makes an inspection and on the basis of the report some candidates are selected to appear before the Selection Committee. The Selection Committee consists of the following

i.District Supply Officer,

ii.District Magistrate/ Additional Magistrate,

iii.Chief Development Officer

iv.One nominee of the Revenue department.

Once the Selection Committee makes its recommendation, the same is forwarded to the DSO who checks the financial status and character of the candidate thereafter the same is forwarded to the District Magistrate, who passes the order and collects a deposit of Rs. 1000/- as security. 

Normally a shop is allotted if there are 2000 units, i.e. 400 ration cards but this limit is raised to 4000 units i.e. 800 ration cards in case the allottee is a cooperative society.  It was observed by the Committee that there is too much political interference in issuance of licences to the Fair Price Shops both in rural and urban areas.

Once the licence is issued, there is no procedure for its renewal, nor is there any restriction of the time period.  As per PDS Control Order, 2001 Fair Price Shop owner is required to display certain information on the Notice Board at a prominent place in the shop.  The Fair Price Shop owners are bound by the terms and conditions laid down in the PDS Control Order, 2001 and the Uttranchal Scheduled Commodities Distribution Order, 2003.