The correct option is C Evolve fair principles for distribution of kits and leave actual distribution to local officials.
The decision problem is for somebody who is perhaps the head of a block level or taluka-level establishment having responsibility to manage welfare schemes. For distribution of kits, Government must have set up some criteria, and having evaluated the situation, the officer has come to the conclusion that demand for kits is higher than the supply This is hardly an uncommon situation in welfare schemes in relatively less-developed areas.
Constituting a committee of local officers such as gram sevak and patwari will hardly be helpful because at that level, policy-making skills are not generally available though they may execute implementation if clear cut criteria are given. Here, the question really is how to prioritize the potential applicants. This may have to dome according to rational criteria such as status as BPL, Antyodaya family, residence in the village, physical disabilities, acquired skill set to use the tool, and so on. After this kind of filtering of potential beneficiaries, the demand and supply can be matched. Hence, a committee of lower level public servants would not be able to address the problem. Making a committee of panchayat members is not an ideal solution. It is possible that bickering on party lines or on the lines of caste and community may start if the panchayat committee is left to do this job. Internal political competition among panchayat members is a serious problem in the country.
Developing some criteria of priority among potential beneficiaries is the most important task here. Once that is developed under proper authority, the local officers can be expected to carry out the distribution according to the criteria. Such criteria cannot and should not be village specific and should be evolved for the district or state level. The officer in charge should get that process completed at least for the district first.
Drawing names in lottery is not a preferred method in administration of welfare schemes. When many applicants want to buy something and there is no difference in entitlement, drawing lots may be acceptable. However, in rural setting, this method is unlikely to be appreciated for a government scheme. This is the second best solution.