The NFSA provides for coverage of upto 75% of the rural population and upto 50% of the urban population of the country for receiving foodgrains at subsidized prices under Targeted Public Distribution System (TPDS), corresponding to which State-wise coverage has been determined by the Planning Commission. This Coverage has been delinked from poverty estimates and is large enough to include all the needy households. Within the coverage determined for each State/ Union Territory (UT), identification of priority households is to be done by States/UTs in accordance with criteria to be evolved by them. State Governments and UT Administrations have been advised to identify the eligible households in a fair and transparent manner.
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