CAG also Raised Ques­tions

The Economic Times - - Sports & Econ­omy -

“How can we? The state has to come up with a con­crete pro­posal on how they would re­pay and rec­on­cile the stocks with­out which we won’t lend.”

There is a stand­off be­tween the lenders and the state af­ter the Re­serve Bank of In­dia or­dered them to pro­vide for po­ten­tial losses fol­low­ing the dis­cov­ery of a gap be­tween the amount of food stocks and the funds that were bor­rowed to buy them. With pro­vi­sion­ing at 15%, this could mean the banks hav­ing to set aside .₹ 1,800-3,000 crore at a time when an RBIdi­rected cleanup of the books has been tak­ing a toll on their earn­ings. ET first re­ported the mat­ter on April15. To be sure, the loans are yet to be clas­si­fied as bad debt. Bankers are sched­uled to meet on Mon­day to dis­cuss the is­sue and are plan­ning to lobby the reg­u­la­tor this week against the pro­vi­sion­ing while rais­ing the sov­er­eign debt ques­tion.

The Pun­jab gov­ern­ment said there had been no mis­use of funds, point­ing out that the grain pur­chases are on be­half of the en­tire coun­try and go to­ward the cen­tral pool. “Funds availed by the state gov­ern­ment on ac­count of food credit lim­its have been utilised for food pro­cure­ment op­er­a­tions, in the na­tional in­ter­est,” the Pun­jab gov­ern­ment said on Fri­day.

“There has been no misu­til­i­sa­tion of funds, and… the dif­fer­en­tial amount is on ac­count of dif­fer­ence be­tween claims and amounts re­ceived.” The state gov­ern­ment has said that it has been in dis­cus­sions with the cen­tral gov­ern­ment about the mat­ter. “The mat­ter re­gard­ing the out­stand­ings/re­ceiv­ables per­tain­ing to the food credit ac­count of the state is al­ready un­der dis­cus­sion with Gov­ern­ment of In­dia,” it said. “A joint com­mit­tee of GoI and state gov­ern­ment has been look­ing into the gamut of is­sues on this ac­count, and the mat­ter is be­ing de­lib­er­ated upon so as to set­tle the claim of the FCI/Gov­ern­ment of Pun­jab.”

Sep­a­rately, the Comptroller and Au­di­tor Gen­eral has raised ques­tions re­gard­ing the state’s food grain pro­cure­ment through var­i­ous state agen­cies. The au­di­tor had sought de­tails of ve­hi­cles used to trans­port food­grains and found that the num­bers pro­vided did not match. Of the ran­domly se­lected 3,319 trucks sup­pos­edly used for trans­porta­tion, CAG could not trace 3,232 of them, i.e. 97.38%. And, of the 87 reg­is­tered ve­hi­cle num­bers that it traced, 15 turned out to be those of scoot­ers, mo­tor­cy­cles and cars.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.