Mains issueGS-2News & Analysis01 October 2026

Leveraging Technology for Efficient Welfare Scheme Delivery and Public Transport Management

Aspirants should be able to analyze how technology, specifically smart card systems and central clearing houses, can address challenges of verification, leakage, and inter-agency coordination in large-scale welfare schemes and public transport, while also considering issues of digital inclusion and fiscal management.

Source: thehindu.comOriginal report

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Why now

The issuance of a tender for a state-wide smart card system for Karnataka's Shakti scheme highlights the ongoing efforts to improve the efficiency, transparency, and accountability of large-scale welfare programs through digital means, addressing implementation challenges three years after its launch.

Core issue

The Karnataka State Road Transport Corporation (KSRTC) has issued a tender to implement a State-wide smart ticketing and card-based system for its 'Shakti' free bus travel scheme. This system, three years after the scheme's launch, aims to digitally verify journeys, streamline reimbursement claims for the four State Transport Undertakings (STUs), and restrict benefits to Karnataka residents. It will introduce a personalized, non-transferable Shakti Card, a Central Clearing House (CCH) for transaction validation and settlement, and support National Common Mobility Card (NCMC) integration. The system will cover over 26,000 buses and process millions of daily journeys, with enrolment through both digital and offline channels to ensure inclusivity.

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