CHANDIGARH: A confrontation may be brewing between the AAP government in Punjab and the BJP-led Central government as the latter has refused to release Rs 1,750 crore from Rural Development Fund (RDF) to the state for the wheat season beginning April 1. Moreover, the state’s demand for 750 megawatt power from the unallocated pool from April 1 to October 31 has also been turned down.
Sources said the Centre has conveyed to the state that it should enact a law to ensure that the RDF is used only for developing rural infrastructure. Punjab gets a grant of Rs 1,000 crore as RDF on paddy purchase and Rs 750 crore on wheat purchase from Food Corporation of India (FCI).
The state government has often been accused of misusing this fund. Over the years, Rs 4,700 crore was allegedly diverted from the RDF grant by the previous governments to repay the loan taken for the farm loan waiver scheme.
The state is now considering bringing an ordinance to amend the Punjab Rural Development Act, 1987, so that RDF can be used for creating infrastructure in rural areas and not to repay the loans taken by the Punjab Mandi Board.
Further, the Centre has turned down the state’s demand for 750 MW power from the unallocated pool while it has given 728 MW power to Haryana. In the summers, many states facing shortage demand power from this pool while surplus states surrender their electricity.
The Northern Regional Power Committee had on March 24 recommended to Union power ministry that Punjab should be given 40% power (600 MW) from this pool, which had 1522.73 MW of power.