Amarinder writes to PM on Rs 31K cash credit limit gap

Press Trust of India  |  New Delhi 

has reiterated his demand for the implementation of the 'principle of shared responsibilities' by the Centre to settle the Rs 31,000 crore cash credit limit gap amount that had been converted by the central government into long-term loan.

The gap, the said in his letter, had arisen due to systemic and structural reasons, and should be addressed through the 'principle of shared responsibilities' amongst all stakeholders in the procurement process of grains in

Following his letter dated January 15, a meeting on the matter was held at the level of Expenditure, on February 20, in which representatives of the Department of Banking, and Public Distribution, and the Government of had participated.

However, no decision has yet been taken, he added, urging the to intervene in the matter to operationalise the suggested principle of shared responsibilities amongst the Government of India, the Government of and the consortium of banks.

Meanwhile, in separate letters to Paswan, the has raised the issue of release of the pending VAT payment as well as non-reimbursement of the actual on procurement of gunny bags, to the State Procurement Agencies.

Singh also drew the minister's attention to his earlier communication of March 26, regarding reimbursement of VAT amounting to Rs 952 crore to the State Procurement Agencies.

"Though, the Corporation of (FCI) has admitted that the amount of VAT paid by the State Procurement Agencies is to be reimbursed, no further progress has yet been reported," he observed, adding that as a result, the agencies had to borrow to fill the gap for timely authorisation of CCL for the current Rabi marketing season.

The letter further said that the FCI and the Ministry of Consumer Affairs, and Public Distribution evidently could not release the requisite amount due to non-availability of funds during the previous year.

However, the funds are available now and, therefore, reimbursement of VAT paid by the State Procurement Agencies should be expedited, the has requested.

On the issue of the gunny bags, Singh said the actual cost incurred on their procurement, including the basic cost, interest, handling and was not reimbursed to the State Procurement Agencies.

The urged the ministry and the FCI to reimburse the actual cost of gunny bags to as these are purchased for grains procured on behalf of the

The wheat procurement season is currently in full swing in with 44.63 been purchased in the mandis till April, 19.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 20 2018. 19:30 IST