M A I N   N E W S

Tribune exclusive
Atta-dal extravaganza pushes Badal government into the red
Central funds being diverted to keep the scheme afloat
Charanjit Bhullar
Tribune News Service

The situation has reached such a pass that banks have refused to release any more funds for the scheme to Punsup, the nodal agency for supplying subsidised atta and daal to beneficiaries in the state. Instead, Punsup (Punjab Civil Supplies Corporation) diverted Rs 370 of the central funds to the scheme to keep it running.

About the scheme Implemented on August 15, 2007, the atta-dal scheme was actually announced as a part of the election manifesto shortly before the last Assembly elections. The scheme is applicable to poor families of all sections of the society. To a family of five members, the government gives 2.5 kg of dal at a subsidised rate of Rs 20 per kg and 25 kg of wheat, 5 kg per head, at Rs 4 per kg.

Though the SAD-BJP has been claiming mileage for running this subsidised atta-dal scheme for the weaker sections of the state, it has failed so far to make any special financial allocation for funding it. The scheme started in 2007 was to benefit more than 13.57 lakh families of the state and the number has now grown to 15 lakh families.

Information obtained under the Right to Information Act reveals that the scheme is being sustained either by diverting central grants or by raising loans from financial institutions, including banks. From the day of introduction of the scheme till March 31 this year, Punsup incurred an expenditure of Rs 1127.27 crore. The money is yet to be reimbursed by the state government.

Information given under RTI reveals that till date the state government has released only Rs 101.25 crore. Peeved at the growing debt of Punsup, its Managing Director Vikas Partap had been writing regularly to Director, Food Supplies DS Grewal for immediate reimbursement of expenses iuncurred by Punsup in running this scheme on behalf of the state government.

Information reveals that on March 31, 2010, the state government sanctioned Rs 208 crore. Subsequently, on March 31, 2011, a sum of Rs 211.54 crore has been sanctioned for the scheme but till date funds have not been released in spite of the formal sanction. Punsup had got a cash credit limit of Rs 290 crore from UCO bank for running this scheme.

Vikas Partap has reportedly said in his letter that Punsup has diverted Rs 370.07 crore of central funds for continuing the supplies to weaker sections. Strong objections have been raised by auditors over this diversion of central funds. As such, fiscal health of Punsup has started deteriorating.

Realising the gravity of the situation, the Punjab Chief Secretary convened a meeting of the agencies concerned in January this year where it was decided that from the beginning of new financial year, the monthly instalment of subsidy would be regularly released to the public sector undertakings sustaining the scheme. But nothing has happened even after two and a half months.

..but state continues with populist ploy
Sarbjit Dhaliwal/TNS

Jalandhar, June 21
In full election mode, the state government today directed its officials concerned to take immediate steps to include 5 lakh families more in the highly subsidised atta-dal scheme, which had brought the SAD-BJP combine to power in March 2007. Already more than 15 lakh families are covered under it. With the inclusion of 5 lakh more families in the scheme, the total number of covered population under it would touch the figure of 1 crore. It would be more than the one-third the population of the state.

Sources said Deputy Chief Minister Sukhbir Singh Badal today discussed this issue with the senior officials of the Food and Supplies and other departments concerned. Officials concerned were informed that at public meetings a large number of poor families not covered under the scheme, request the Chief Minister for their inclusion. The Food and Supplies Department, sources said, has sought an additional amount of Rs 146 crore to add 5 lakh families to the scheme.

However, it is likely to get about Rs 80 crore because by the time the target of 5 lakh families would be included, almost half of the current fiscal year would be over. The popular scheme virtually proved a brahmastra for the SAD and helped it to ride to power in the state. Obviously, Sukhbir is keen to take advantage again of it again in the next Assembly elections. DCs of all districts would be directed to hold a fresh survey to include more families in the scheme.