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LATEST NEWS UPDATES | Midday meals face funds hurdle -Akshaya Mukul

Midday meals face funds hurdle -Akshaya Mukul

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published Published on Oct 4, 2013   modified Modified on Oct 4, 2013
-The Times of India


NEW DELHI: UPA is going to town for having delivered on its promise of food security. But, come December and this promise would fall flat as many government schools are likely to go without midday meal (MDM).

The reason: the food ministry's new missive to the HRD ministry that like other food schemes, MDM would also have to make pre-payment before lifting foodgrains from Food Corporation of India (FCI) godowns.

Sources in the HRD ministry said, "Food ministry's recent letter is against the 2009 decision decided in a meeting between then food minister Sharad Pawar and then HRD minister Kapil Sibal. The two ministries had decided that payment for foodgrains would be decentralized at the district level. It was done due to large scale complaint that payment to FCI is delayed."

Prior to 2009, payment to FCI was made by the HRD ministry. Pawar and Sibal had also decided that the HRD would give FCI a corpus which at the end of March, 2013, stood at over Rs 300 crore. HRD sources said the food ministry took a suo motu decision to make pre-payment the condition.

"Ironically, FCI is happy with the current decentralized system," a ministry official said, adding that when regulations were sent for interministerial consultation in 2009, the food ministry had approved decentralized system.

Justifying the pre-payment demand, a food ministry official said, "Payments from states are usually delayed, which directly affects the functioning and bottomline of FCI. It is for the HRD ministry to suggest what can be done." The HRD ministry suggests an alternative to resolve the imbroglio like an increase in corpus.

Pre-payment, sources said, is not always possible in a mammoth scheme like the MDM. Even with the current system of clearing the FCI foodgrain bills on a monthly basis there have been reports of many states not able to make payment on time. Recently, several schools in Jharkhand had to go without MDM as the state did not have the necessary fund.

According to the 2009 guidelines - notified in February, 2010 - foodgrains are allocated bi-annually. The first six monthly allocations are made in the first week of February of the previous financial year on the basis of number of children and number of school days. The second and final allocation is made in the first week of August.

As for payment, FCI raises the bills pertaining to supply of foodgrains during a month to the district administration by the 10th day of the next month. State government nominates an officer who receives the bill submitted by FCI and ensures payment is made in time.

State governments make adequate provision in its budget keeping in mind the requirement of funds for foodgrains. Central government releases the funds to states in advance as soon as the budget is passed.


The Times of India, 4 October, 2013, http://timesofindia.indiatimes.com/india/Midday-meals-face-funds-hurdle/articleshow/23480561.cms


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