 "Chhattisgarh pays Rs 844 cr excess interest to banks")
Chhattisgarh State Marketing Federation (MARKFED) made an excess interest payment of Rs 844.68 crore to the banks since cash credit could not be cleared within the specified date.
The report of comptroller and Auditor General of India (CAG) on non-PSUs sectors for the year ended 31 March 2015 said during kharif marketing season (KMS) 2010-15, MARKFED procured 32.5 million tones of paddy and obtained Rs 54,327.36 crore cash credit (CC). It paid an interest of Rs 2,707.4 crore to banks during the season 2010-15.
The report of comptroller and Auditor General of India (CAG) on non-PSUs sectors for the year ended 31 March 2015 said during kharif marketing season (KMS) 2010-15, MARKFED procured 32.5 million tones of paddy and obtained Rs 54,327.36 crore cash credit (CC). It paid an interest of Rs 2,707.4 crore to banks during the season 2010-15.
“However, there was non-clearance of CC within every KMS year for which an extra amount of Rs 844.68 was paid as interest by the MARKFED,” the report said.
The reason for outstanding CC beyond KMS were non disposal of paddy within the season besides non-recovery of outstanding amount from the Food Corporation of India (FCI) and Chhattisgarh State Civil Supplies Corporation, delay in submission of loss claim, non-reconciliation of advances etc.
“All these factors had led to payment of avoidable interest,” the report said.
“All these factors had led to payment of avoidable interest,” the report said.
The CAG report also pointed serious irregularities in the custom milling. “The state government incurred loss of Rs 591 crore due to payment of milling charges beyond the norms fixed by the government of India,” the report said, adding that paddy worth Rs 278.36 crore was damaged due to lack of covered storage facility for procured paddy and delay in milling. In all, 33 rice millers in the state did not deposit rice worth Rs 74.53 crore even after expiry of milling schedules.