Amend RDF Act, or will freeze kharif funds: Centre to Punjab
Directs to use the funds accrued from the sale of foodgrain for upgrade of procurement infrastructure only
CHANDIGARH : The Union ministry of consumer affairs, food and public distribution has sent a reminder to the state government to amend the Punjab Rural Development Act, 1987, to use the funds accrued from the sale of grain for upgrade of procurement infrastructure only or it will not release the payments from the kharif procurement season.
A communiqué in this regard was received last week when the Centre cleared the RDF backlog — 2% of the kharif marketing season last year and 1% of the current year’s rabi season.
Nearly Rs 1,300 crore in RDF was credited to the state exchequer of a total of Rs 4,000 crore, including pending accruals and incidentals, that was cleared.
The Centre has assured 3% RDF for the upcoming kharif procurement that will take place in October-november with a rider that state amends the RDF Act.
As per the provisions of the RDF Act, funds are used for promoting agriculture for higher production, compensation for loss and damage to crops due to natural calamities, storage facilities, construction and repair of roads, canals, drains, streetlights, and panchayat ghars, setting up health infrastructure in rural areas and supply of drinking water and maintaining sanitation in rural areas.
Section 7 of the Act also entails welfare of farm labourers, setting up of veterinary hospitals, educational institutions in rural areas and providing debt relief to farmers.
In a meeting held with Union food and public distribution department officials in April, the Punjab ministers for finance, and food and civil supplies had agreed to amendments in the Act. It was the Food Corporation of India (FCI), the central agency that drives the public distribution system in the country, that had suggested the changes in the RDF use.
During the previous Shiromani Akali Dal-bharatiya Janata Party (SAD-BJP) government, a large portion of rural development fund was used on sangat darshan programmes of then chief minister Parkash Singh Badal. On the other hand, the current Capt Amarinder Singh-led government has used these funds for debt relief to farmers.
In the debt waiver scheme, Rs 4,600 crore debt of 5.5 lakh farmers was waived while waiver to the tune of Rs 1,800 crore is still pending. As an extension of the scheme, Rs. 520 crore is to be paid to 2.85 lakh landless labourers.
A senior board official said, ““We have no funds to repay loans or undertake development works.”
THE CURRENT AMARINDER-LED CONGRESS GOVT IN THE STATE HAS USED THE RURAL DEVELOPMENT FUNDS FOR DEBT WAIVER TO FARMERS