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Naveen Writes To Paswan For Immediate Release Of PDS Subsidy


28 August 2019

OMMCOM NEWS


Bhubaneswar: While Odisha Government has been furnishing utilisation certificates to claim quarterly provisional subsidy of public distribution system (PDS), the Centre's funding has been irregular and un-patterned. Due to delay in release of subsidy, Odisha State Civil Supplies Corporation has incurred outstanding liability of Rs 2,123 crore towards provisional subsidy from 2017-18, a letter written by Chief Minister Naveen Patnaik to Union Minister Ram Vilas Paswan stated.

The advance subsidy as due to the State for the quarter ending September 30, is Rs 1,345 crore. The delay in release of funds has resulted in increased bank borrowing and interest burden on Odisha State Civil Supplies Corporation.

"Government of Odisha undertakes procurement of paddy on behalf of Government of India through its agencies. Being a Decentralised Procurement State since 2003-04, we meet our requirement under Targeted Public Distribution System and other Welfare Schemes," Naveen's letter stated.

The responsibility assigned by Government of India under DCP comprises of procurement, storage and distribution. The cost pertaining to the entire operations consist of MSP, taxes as payable and other incidental expenditure incurred in acquistion and distribution, the lettter stated.

"The MoU between Odisha and the Centre for this purpose in October 2015 lays mechnism for zero financial liability on the procuring agencies with regard to permissible items of cost to be borne by the Central Government," Naveen added.

The Odisha CM sought Paswan's personal attention on this matter and requested the Union Minister to take measures for one time clearance of outstanding dues of the State. This shall include interest burden which is due to delay in release of subsidy. Naveen also requested Paswan to take measures for adherance to the stipulation of the MoU in the matter of release of advance provisional subsidy to Odisha.