Parliamentary panel asks rural & HRD ministries to settle FCIs R3,166-cr dues

Written by Sandip Das | New Delhi | Updated: Mar 31 2012, 06:59am hrs
A parliamentary panel has asked the ministries of rural development and human resource development ministries to 'immediately' settle the long-outstanding dues of over R3,100 crore owed to Food Corporation of India (FCI) for the subsidised grain supplied under various social welfare schemes.

Questioning the government's sincerity in settling the dues, the committee observed that the very purpose of the subsidy is defeated if the funds are not utilised properly for the intended purpose.

Out of the amount of R3,166 crore pending against the two ministries, more than R2,890 crore is with the HRD ministry while R265 crore is yet to be received from the rural development ministry.

While FCI is paid in advance for supplies of grain to be distributed through the public distribution system and to the armed forces, contributions to the ministries flagship schemes were made on credit.

The committee fails to understand the reasons behind the outstanding dues when the states and Union territories are required to deposit the full amount of foodgrain in advance before lifting the grain from FCI depots, the panel observed.

It has recommended early paymeoor.

Sources told FE that the two ministries owe the amount to FCI towards payment for grain supplied for two social sector programmes Sampoorna Grameen Rozgar Yojana (SGRY) and Mid-Day Meal (MDM) scheme.

FCI supplied grain for SGRY, which has now been merged with the National Rural Employment Guarantee Act, under the rural development ministry, and MDM scheme implemented by the HRD ministry.

The grain were supplied on credit basis and the cost of grain is reimbursed only after the submission of bills to the concerned ministries, the parliamentary standing committee on food, consumer affairs and public distribution (2011-12), said in its report presented to the Lok Sabha.

Due to the government's 'non-seriousness' in liquidating the dues to the FCI, the panel has recommended to the food ministry to take up the matter at the highest level of the two ministries for early payment of the outstanding dues.

The food ministry had informed the parliamentary panel that the FCI has not supplied grain to the rural development ministry since 2008-09. The report said the payment for the grain supplied under MDM scheme has been decentralised since April 2010, and at present, the payment is made by concerned revenue district authorities.nt of the dues so that the money could be utilised for the benefit of the poor.

Sources told FE the two ministries owe the amount to FCI towards payment for grain supplied for two social sector programmes Sampoorna Grameen Rozgar Yojana (SGRY) and Mid-Day Meal (MDM) scheme.

FCI supplied grain for SGRY, which has now been merged with the National Rural Employment Guarantee Act, under the rural development ministry, and MDM scheme implemented by the HRD ministry.

The grain were supplied on credit basis and the cost of grain is reimbursed only after the submission of bills to the concerned ministries, the parliamentary standing committee on food, consumer affairs and public distribution (2011-12), said in its report presented to the Lok Sabha.