Explanation:

The NITI Aayog recently circulated a discussion paper on a proposed revision in the National Food Security Act (NFSA), 2013.

• The NFSA provides a legal right to persons belonging to “eligible households” to receive foodgrains at subsidised price– rice at Rs 3/kg, wheat at Rs 2/kg and coarse grain at Rs 1/kg — under the Targeted Public Distribution System (TPDS). These are called central issue prices (CIPs).
• Under sub-section (1) of Section 3 of the Act, the term “eligible households” comprises two categories — “priority households”, and families covered by the Antyodaya Anna Yojana (AAY).
• Priority households are entitled to receive 5 kg of foodgrains per person per month.
• AAY households are entitled to 35 kg per month at the same prices.

Proposed Changes

• The national rural and urban coverage ratio be reduced from the existing 75-50 to 60-40. if this reduction happens, the number of beneficiaries under the NFSA will drop to 71.62 crore (on the basis of the projected population in 2020).
• To make these changes in the law, the government will have to amend sub-section (2) of Section 3 of the NFSA. For this, it will require parliamentary approval.
• If the national coverage ratio is revised downward, the Centre can save up to Rs 47,229 crore (as estimated by the NITI Aayog paper). However, the move may be opposed by some of the states.

Hence both statements are correct.