Odisha CM Demands Release of Outstanding Subsidy from Centre

Bhubaneswar:  Odisha Chief Minister Naveen Patnaik  today urged the Centre to release the outstanding subsidy amount to the State at the earliest.

In a letter to Union Consumer Affairs, Food & Public Distribution Minister Ram Vilas Paswan, the Chief Minister asked the Union Minister to take necessary measures for one time clearance of outstanding dues of the State including the interest burden which is due to delay in release of subsidy.

Naveen wrote, “The Government of Odisha undertakes procurement of paddy on behalf of the Government of India through its agencies. Being a Decentralized Procurement State since 2003-04, we meet our requirement under Targeted Public Distribution System and other Welfare Schemes being run in the State as per the allocation made by Government of India and contribute the balance rice to the Central Pool”.

“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 Requisition and distribution”, the letter mentioned.

The CM said, “The Memorandum of Understanding executed between, the government of Odisha in Food Supplies & Consumer Welfare Department and the Government of India in the Department of Food and Public Distribution on 03 10.2015 lays mechanism for zero financial liability on the procuring agencies with regard to permissible items of cost to be borne by Govt. of India”.

“It is mandatory as per the agreed terms and conditions that the anticipated cost will be released in the form of advance subsidy a 90% of admissible claim on quarterly basis in the first  month of every quarter. Further the State Government/designated agency shall be paid quarterly provisional subsidy on deduction of the advanced amount. However, the release of advance and provisional subsidy to Odisha is irregular and un-patterned, despite the State furnishing utilization certificates in respect of the preceding period while submitting claim of advance subsidy at the start of every quarter”, the CM said.

He further mentioned, “Due to delay in release of subsidy, Odisha .State Civil Supplies Corporation, the major procuring agency pa the State Government, has incurred outstanding liability of Rs.2123 Cr. as receivable provisional subsidy by accumulation from the Financial Year 20 17-18. Further advance subsidy as due to the State for the quarter ending  30th September is Rs.1345 Cr. The delay in release of funds has resulted in increased bank borrowing and interest, burden on the State Corporation. This interest burden must also be borne by the Govt. of India”.