CHANDIGARH: The Punjab Cabinet on Friday gave approval to release cost of Rs. 36.70 crore to the Punjab Agro Foodgrains Corporation (PAFC) on account of administrative expenses for the work finished by it throughout Rabi Marketing Season (RMS) 2019-20.
The approval got here throughout a Cabinet assembly chaired by Chief Minister Captain Amarinder Singh right here this night by way of video conferencing.
According to a spokesperson of the Chief Minister’s Office, the mentioned cost could be launched, topic to the situations of the Finance Department, by deducting/recovering the identical from the accounts of Pungrain, Punjab State Warehousing Corporation (PSWC) and Markfed, as per the PAFC share in procurement switch to them from the executive expenses receivable by different procuring companies for Kharif Marketing Season (KMS) 2019-20.
The procurement share of PAFC throughout KMS 2018-19 was 10%, which was transferred to Pungrain (4%), Markfed (3%) and PSWC (3%) throughout KMS 2019-20. Accordingly, the proportionate share of administrative expenses for PAFC quantities to Rs. 36.70 Crore.
State companies that procure foodgrains (wheat and paddy) on behalf of Government of India are paid administrative expenses @ 2.5% of MSP of paddy throughout KMS solely. These administrative expenses are disbursed when paddy is shelled & rice is delivered to Food Corporation of India, GoI. These funds are utilized by the state companies throughout the yr for varied submit procurement bills, together with personnel, custody & upkeep, repairs of shares, different administrative bills and many others.
PAFC was allowed as State procurement Agency for the procurement of wheat and paddy within the state by the Food, Civil Supplies and Consumer Affairs division. PAFC procured virtually 10% of the overall paddy procured by the State Procurement Agencies.
To guarantee higher administration of the procurement operations, the State Government had determined earlier than KMS 2019-20 to cut back the quantity of procurement companies within the State. Accordingly, Punjab Agro Food Grains Corporation was withdrawn from the procurement of foodgrains within the State vide letter dated July 2, 2019. Therefore, PAFC didn’t obtain any administrative bills throughout KMS 2019-20, which adversely affected the assorted funds by PAFC together with custody & upkeep, repairs of shares, service of debt, personnel and administrative bills and many others, the spokesperson added.