BHUBANESWAR: With Food Subsidy Bill of the State mounting, Chief Minister Naveen Patnaik on Wednesday urged the Centre to immediately release outstanding dues amounting Rs 3,468 crore to lessen the financial burden of the State agencies involved in paddy procurement.
“The delay in release of funds has resulted in increasing bank borrowing and interest burden on the Odisha State Civil Supplies Corporation (OSCSC). The interest burden must also be borne by the Government of India,” Naveen said.
Writing to Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan for the second time in six months, Naveen said the State-run OSCSC, major paddy procuring agency of the State Government, has incurred outstanding liabilities of Rs 2,123 crore as receivable from 2017-18 kharif marketing season. Advance subsidy due for the quarter ending September 30 is Rs 1,345 crore, the letter said.
Reminding about the memorandum of understanding between Odisha and the Centre for decentralised procurement, Naveen said there lies a mechanism for zero financial liability on the procuring agencies with regard to permissible items of cost to be borne by the Union Government.
“It is mandatory as per the agreed terms and conditions that the anticipated cost will be released in the form of advance subsidy (90 per cent of the admissible claims) on quarterly basis in the first of month of every quarter. However, the release of advance and provisional subsidy to Odisha is irregular and un-patterned, despite the State furnishing utilisation certificates in time,” the Chief Minister said.
Under decentralised procurement, the State Government has been procuring paddy on behalf of the Centre through its agencies since 2003-04. The State meets it requirement for distribution of food grains under Targeted Public Distribution System (TPDS) and other welfare schemes and contributes the balance to the central pool.
The responsibility assigned by the Centre under decentralised procurement comprises of procurement, storage and distribution of rice.
The cost pertaining to the entire operations consist of minimum support price, taxes as payable and other incidental expenditure incurred in acquisition and distribution, it stated.
Seeking personal attention of the Union Minister, the Chief Minister requested the former to take measures for one-time clearance of outstanding dues of the State, including interest burden which is due to delay in the release of subsidy.
MoU terms
● State has been procuring paddy on behalf of the Centre through its agencies since 2003-04
● Odisha meets it requirement for distribution of food grains under TPDS and other welfare schemes
● Balance of the food grains is contributed to the central pool
● Responsibility assigned under decentralised procurement comprises of procurement, storage and distribution of rice
● Cost pertaining to entire operations consist of MSP, taxes as payable and other incidental expenditure