Punjab has no money for atta-dal scheme

Thursday, 12/04/2012

http://www.tribuneindia.com/2012/20120412/punjab.htm#14

Procuring agencies under debt of Rs 1,400 cr; govt seized of matter

Arranging money for the atta-dal scheme has become a challenge for the cash-strapped state government. Sources in the government said for 2012-13, Rs 400 crore was needed for the scheme.

After taking up the issue with Chief Minister Parkash Singh Badal, the Food and Civil Supplies Minister held a meeting with Principal Secretary (Finance) Satish Chandra in this regard. However, no final decision was taken on the issue.

Sources said the state government's agencies, including Punsup, Markfed, Punjab Agro Industries Corporation and Warehousing Corporation, have expressed their inability to procure wheat and pulses for the scheme due to an outstanding debt of Rs 1,400 crore incurred by them.

Sources said that the agencies had been procuring wheat and pulses after securing loans from banks on the assurance given by the state government that the loan amount would be reimbursed. However, the government had not given the money to the agencies.

The government used to make a provision of Rs 350 crore every year in its budget since 2007 when the scheme was launched, but it did not pay this amount to the agencies that had been given the responsibility to procure wheat and pulses for the scheme.

The scheme had proved a boon for the SAD-BJP Government in the assembly elections. Poll observers had stated that the SAD-BJP alliance returned to power because of this scheme, which made poor sections of the society to vote for the ruling coalition.

The financial burden of the scheme would go up this time because the SAD had promised to give atta at Rs 2 per kg if returned to power in its election manifesto. In the previous term, it had given flour at Rs 4 per kg and pulses at Rs 20 per kg.

There are about 15.5 lakh beneficiaries of this scheme in the state.

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