Bhubaneswar: Chief Minister Naveen Patnaik today requested the Union Consumer Affairs Food and Public Distribution Ram Vilash Paswan to clear outstanding dues of the State towards the procurement of paddy made on behalf of the Union government. In a letter to Mr Pawan, the Chief Minister also requested to adhere to the stipulation of MoU signed in the matter of release of advance and provisional subsidy to Odisha and cleared the dues including the interest burden at the earliest . Patnaik said the MoU signed between the Odisha Government and the Central Government in the Department of Food and Public Distribution on October 3,2015 lays mechanism for zero financial liability on the procuring agencies.
As per the agreed terms and conditions the anticipated cost will be released in the form of advance subsidy @ of 90 per cent 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 utilisation certificates in respect of the preceding period while submitting claim of advance subsidy at the start of every quarter, Patnaik said.
Due to delay in release of subsidy Odisha State Civil Supplies Corporation, the major procuring agency of the State, has incurred outstanding liability of Rs.2123 crore as receivable provisional subsidy by accumulation from the Financial Year 201718, the Chief Minister said and urged Mr.Paswan to intervene and initiate measure for one time clearance of the dues. 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 Union government Patnaik added.
