Hindustan Times (Bathinda)

FCI wheat worth ₹700cr got damaged in Punjab in 5 yrs, reveals CAG report

Huge stock of wheat kept lying in the open due to delay in scheme to augment foodgrains storage

- Press Trust of India letterschd@hindustant­imes.com

NEWDELHI: Comptrolle­r and Auditor General (CAG) has found that Food Corporatio­n of India (FCI) wheat stock worth ₹700 crore was damaged in Punjab from 2011 till March 2016 as the grain was kept in open areas due to lack of storage facility.

The damaged wheat stock could not be supplied through the ration shops, the CAG said in its latest report tabled in Parliament on Friday. The CAG has audited implementa­tion of the scheme PEG (Private Entreprene­ur Guarantee) — to o augment the covered storage capacity — in Punjab to create storage capacity and the way FCI managed its debt, labour and incentive payments during 2011-16.

The CAG also found stateowned FCI selling wheat to bulk consumers at a rate below the cost in 2013-14 leading to non-recovery of ₹38.99 crore. Besides, the FCI incurred excess expenditur­e of ₹237.65 crore due to non-rationalis­ation of surplus labour and deployment of costlier labour at depots.

The FCI had made fraudulent excess payment of ₹14.73 lakh and ₹37.89 lakh to transport contractor­s on account of payment of higher rates and for bills for longer distance than actual for transporta­tion of food grains, the CAG said.

On the PEG scheme, the auditor said the implementa­tion was “negligible in the initial years and even after seven years, full capacity had not been taken over. The operation of the scheme also suffered from various lacunae”.

In Punjab, 53.56 lakh tonnes of wheat stock was lying at covered and plinth (CAP), “kacha” plinth and mandi with state government agencies and the FCI.

“4.72 lakh tonnes of wheat valuing ₹700.30 crore got deteriorat­ed which were declared non-issuable to the public distributi­on system (March 2016) as it was stored in open areas,” the CAG report stated.

Huge stock of wheat kept lying in the open due to delay in implementa­tion of the PEG scheme. Such stock rose from 103.36 lakh tonnes in 2011-12 to 132.68 lakh tonnes in 2012-13, the CAG pointed out.

The audit noticed that in Sangrur and Faridkot districts, the capacity of only 12.94 lakh tonnes was taken over under the PEG scheme even though the FCI wheat stock lying open was much higher at 14.40 lakh tonnes with a value of ₹2,413.04 crore till June 2015.

“Despite huge quantities of wheat lying unprotecte­d in CAP/ kacha plinth, a capacity of 6 lakh tonnes was de-hired by FCI during September 2012 and March 2016 in these districts. Thus, in both districts, a significan­t quantity was lying in CAP/kacha plinths exposed to vagaries of weather,” it added.

The CAG also found that ineligible bidders were awarded contracts for the constructi­on of godowns and undue benefit of ₹21.04 crore as rent during 2012-13 to 2015-16 was passed on to private enterprise­s.

Handling cost of ₹9.77 crore was incurred during 2012-13 to 2015-16 due to taking over of godowns without railway sidings and excess expenditur­e of ₹8.36 crore on transporta­tion of grains was incurred due to incorrect measuremen­t of distance by state agency PUNGRAIN and the FCI.

On FCI labour, the CAG said the labour management practices in the FCI depots were found to be “deficient with poor administra­tive controls” resulting in payment of “idle wages, inadmissib­le incentive payments” in violation of rules.

“The FCI has not been able to tackle the problem of proxy labours in its depots,” it said, suggesting the agency to take action to eliminate proxy labour.

 ?? HT FILE ?? In the absence of adequate covered storage facility, huge stocks of foodgrains are damaged due to rain in Punjab.
HT FILE In the absence of adequate covered storage facility, huge stocks of foodgrains are damaged due to rain in Punjab.

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