BENGALURU: The State Government, which is already reeling under a fund crunch, is likely to stop funding the Indira Canteens as it has become a burden on the exchequer. Instead, it may look at renting out the premises to private agencies to run the canteens, and thereby raise additional revenues. The Indira Canteens were started by the previous Congress government, headed by Siddaramaiah, to provide food at subsidised cost to the urban poor.
Speaking to The New Sunday Express, Urban Development Minister Byrathi Basavaraj said the government is spending over Rs 400 crore per year towards subsidy on the canteens. “There are allegations of fund misuse. The contractors provide bills for 500 people and collect the money from the government, whereas hardly 200-300 people may have had food. This needs to be probed,’’ he said.
The minister pointed out that Chief Minister B S Yediyurappa had recently instructed them to get a report on the working of the Indira Canteens. “I have directed officials to get full information on the canteens and number of customers. The report is expected to be ready in a month,’’ he said. When asked if the government will shut the canteens, Basavaraj said there is a proposal to rent them out to private agencies. “In such a case, we will not fund it. The private agency can fix the rates,’’ he said.
Govt will save Rs 400cr: Min
“We will get revenue through rent and Rs 400 crore, which we are paying annually will be a saving for us,” Minister Basavaraj said. The scheme was started in Bengaluru in August 2017 and later extended to other districts. At present, there are 194 Indira Canteens in Bruhat Bengaluru Mahanagara Palike (BBMP) limits, including mobile canteens, and another 184 across the state.
At these canteens, breakfast is served for Rs 5, while lunch and dinner is available for Rs 10. Catering contractors took over the operations after bidding for anywhere between Rs 58 and Rs 62 per day (breakfast and meals included) of which Rs 25 is paid by the customer and the remainder Rs 33 to Rs 35 is borne by the government.
The Indira Canteen was the brainchild of the then Chief Minister Siddaramaih. The first one was inauguarted by Congress leader Rahul Gandhi in 2017. When Yediyurappa became CM last year, there was proposal to change the name to Annapoorna canteen, but it was later dropped.