CM seeks PDS subsidy, interest

Bhubaneswar: Chief Minister Naveen Patnaik Wednesday once again demanded immediate release food subsidy dues amounting of `3,468 crore payable to the state by the Centre.

In a letter to Union Consumer Affairs, Food and Public Distribution Minister Ram Vilas Paswan, Naveen said, “Due to delay in release of subsidy, the Odisha State Civil Supplies Corporation (OSCSC) has incurred an outstanding liability of `2123 crore as receivable provisional subsidy by accumulation from the fiscal 2017-18. Further advance subsidy dues to the state for the quarter ending September is about `1345 crore.”

Stating that the delay in release of funds has led to increased bank borrowing and interest burden on the OSCSC, the Chief Minister pointed out and demanded that the Centre bear the interest burden.

The state government undertakes paddy procurement on behalf of the Centre through its agencies. Odisha which is a decentralised procurement state since 2003-04, meets its requirements under targeted Public Distribution System (PDS) and other welfare schemes being run in the state as per allocations made by the Centre. The state contributes the remaining balance of rice to the Central pool.

As per the agreement between the state and the Centre, it is mandatory that the anticipated cost will be released in the form of advance subsidy at 90 per cent of admissible claim on quarterly basis in the first month of each quarter. Further, the state government/designated agency shall be paid quarterly provisional subsidy on deduction of the advanced amount.

However, the Centre has not released advance and provisional subsidy to Odisha regularly, though the state furnishes utilisation certificates in respect of the preceding period while submitting claims of advance subsidy at the start of each quarter, he said in the letter.

Seeking personal intervention of Paswan, the Chief Minister demanded early and one-time clearance of all the dues and interest incurred due to delay in  releasing the fund.

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