Paswan assures Capt on review of Rs 31,000-cr debt

Ravi S Singh

Tribune News Service

New Delhi, August 22

Union Food and Public Distribution Minister Ram Vilas Paswan today assured Chief Minister Capt Amarinder Singh that he would make a recommendation to the Finance Ministry about reviewing the state’s debt burden of Rs 31,000 crore, incurred on the purchase of foodgrains for the Central pool. During a meeting with Paswan here, the CM sought the Centre’s help to settle the debt burden by examining the matter afresh.

Paswan said: “There was confusion over the findings of the Jha Committee, which was set up by the Centre in April 2016 to examine the state’s claims of Rs 20,000-crore foodgrain dues.”

PK Jha, Additional Secretary, Department of Food and Public Distribution, had headed the committee comprising officials from the Food Corporation of India (FCI), Finance Ministry, and the state government.

The Punjab and Central governments had not been on the same page over the expenses incurred on the transportation of grains, labour and packaging. This had resulted in delayed payments by the Centre.

During the meeting, Capt Amarinder said the failure to resolve the issue ahead of the procurement season had compelled the state government to convert about Rs 29,920 crore (as on March 31 this year) into a “clean term loan”. Consequently, the state was burdened with an annual debt-servicing liability of Rs 3,240 crore for the next 12 years.

He said the Rs 31,000-crore debt, which includes a component of Rs 18,500 crore, had arisen due to a difference in actual cost and provisional/final cost approved by the Centre. A state government functionary said the state wanted rationalisation of the interest amount.

Meanwhile, Paswan agreed to allow higher user charges on account of depreciation of once-used gunny bags for the forthcoming kharif season. He said an order to this effect would be issued next week.