Odisha CM seeks release of outstanding subsidy from Centre

Bhubaneswar: Odisha Chief Minister Naveen Patnaik today wrote to Union Consumer Affairs, Food & Public Distribution Minister Ram Vilas Paswan urging the latter to release the outstanding subsidy amount for the state.

“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 @ 90% of admissible claim on quarterly basis in the first month of every quarter,” Naveen mentioned in the letter.

“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 unpatterned, despite the State furnishing utilisation certificates in respect of the preceding period while submitting claim of advance subsidy at the start of every quarter. Due to delay in release of subsidy, Odisha State Civil Supplies Corporation has incurred outstanding liability of Rs 2123 crore as receivable provisional subsidy by accumulation from the Financial Year 2017-18. Further advance subsidy as due to the State for the quarter ending 30 September is Rs 1345 crore. The delay in the release of funds has resulted in increased bank borrowing and interest burden on the State Corporation. This interest burden must also be borne by Govt. of India,” the CM wrote in the letter.

Patnaik sought Paswan’s personal attention to the matter and requested him to take measures for one time clearance of outstanding dues of the State (including the interest burden which is due to delay in release of subsidy) at the earliest.