Naveen Patnaik writes to Ram Vilas Paswan seeking immediate release of PDS subsidy for Odisha

  • Odisha chief minister Naveen Patnaik on Thursday wrote to Union minister Ram Vilas Paswan urging the Centre for the immediate release of outstanding public distribution system (PDS) subsidy of Rs 2123 crore

  • 'While Odisha government has been furnishing utilisation certificates to claim quarterly provisional subsidy of the public distribution system (PDS), the Centre's funding has been irregular and un-patterned', Patnaik said in his letter

  • 'The delay in the release of funds has resulted in increased bank borrowing and interest burden on Odisha State Civil Supplies Corporation', Patnaik said

Bhubaneswar: Odisha chief minister Naveen Patnaik on Thursday wrote to Union minister Ram Vilas Paswan urging the Centre for the immediate release of outstanding public distribution system (PDS) subsidy of Rs 2123 crore.

 Naveen Patnaik writes to Ram Vilas Paswan seeking immediate release of PDS subsidy for Odisha

File photo of Odisha chief minister Naveen Patnaik. PTI

In a letter to the Union Minister of Consumer Affairs, Food and Public Distribution, Paswan, Patnaik said: "While Odisha government has been furnishing utilisation certificates to claim quarterly provisional subsidy of the 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".

It also emphasised that the state government undertakes the procurement of paddy on behalf of the Centre through its agencies, it is mandatory that the anticipated cost will be released in the form of advance subsidy at 90 percent of the admissable claim on a quarterly basis in the first month of every year.

"The designated agency of the state government shall be paid quarterly provisional subsidy on the deduction of the advance amount", the letter read. Besides this, the advance subsidy as due to the state for the quarter ending 30 September is Rs 1,345 crore, the Odisha chief minister stated.

"The delay in the release of funds has resulted in increased bank borrowing and interest burden on Odisha State Civil Supplies Corporation", Patnaik said. "Being a decentralised procurement State since 2003-04, we meet our requirement under targeted public distribution system and other welfare schemes", he added.

The chief minister sought Paswan's personal attention on this matter and urged him to take measures for one-time clearance of outstanding dues of the state, adding that it shall include interest burden which is due to delay in the release of subsidy.

Updated Date: Aug 29, 2019 14:07:52 IST