The Cabinet today decided to write off Rs 59.74 crore interest amount to be paid by the Jammu and Kashmir government to the state-run FCI for purchase of foodgrains on credit way back in 1999-2002.
"The Cabinet cleared the Food Ministry's proposal to write off interest amount of Rs 59.74 crore to be paid by Jammu and Kashmir to FCI," sources said.
The interest amount accrued as on October 1, 2013 has been waived off for the state government, while the state had demanded the complete waiver of Rs 70 crore, sources added.
The Food Corporation of India (FCI) had supplied foodgrains on credit between 1999 and 2002 to Jammu and Kashmir. The state government has already paid the cost of foodgrains and had requested the Centre to write off the interest payment.
Early this month, state chief minister Omar Abdullah had met Union Food Minister Ram Vilas Paswan seeking complete waiver of Rs 70 crore interest on payment due to the FCI.
The state is implementing universal public distribution system.
