The Railways has raised a crimson flag over the rising working value of its Kisan Rail service, with the subsidy it offers to farmers for transporting their produce to the tune of over Rs 50 crore already, which is anticipated to succeed in the height of this monetary 12 months. decided to obtain underneath the initiative. From the Ministry of Food Processing Industries (MoFPI), The Indian Express has discovered.
The Railways has conveyed to the MoFPI that the quantity required to cowl the aid this 12 months might be virtually 3 times the sanctioned funds, information reviewed by The Indian Express present.
In its communication with MoFPI, the transporter talked in regards to the “discontinuation” of the subsidy and warned that it will result in “discontent among the farming community”.
Records present that railways has given subsidy of Rs 70 crore to farmers to this point this 12 months and until August the restrict of Rs 50 crore has been breached. In letters despatched to MoFPI Secretary Pushpa Subramaniam, the Railways has conveyed that the precise quantity required to cowl the subsidy on this monetary 12 months could be round Rs 150 crore.
“In view of the widespread reputation of this scheme and the Railways’ plan to introduce Kisan Rail in new areas, it could kindly be thought of that discontinuation of subsidy underneath ‘Operation Greens Top to Total’ might create discontent among the many farming group. Therefore, it’s requested that the Ministry of Food Processing Industries might kindly improve the restrict to not less than Rs 150 crore for the 12 months 2021-22,” Railway Board Chairman Sunit Sharma wrote in a letter to Subramaniam in August Was.
When contacted, MoPFI officers declined to remark. But sources within the ministry advised The Indian Express that it has launched Rs 37 crore as subsidy to this point for this fiscal. “The balance (Rs 13 crore) will be released in subsequent months,” stated sources.
He stated the ministry had requested the Department of Expenditure for extra funds on this monetary 12 months and for elevating the subsidy restrict to Rs 50 crore every year, which was initially for the complete interval of the fifteenth Finance Commission (2021-26). was decided for.
“We wouldn’t have a lot cash, so we now have restricted the subsidy quantity to Rs 50 crore for the monetary 12 months 2021-22. We wrote to the Department of Expenditure asking if they will present us with extra funds on this account, however they’ve rejected the request. So now, Indian Railways is taking on the matter with the Department of Expenditure,” MoPFI sources stated.
During the final monetary 12 months, information present, the Railways launched a subsidy of Rs 27.33 crore underneath the scheme. For this era, MoPFI sources stated, the ministry launched Rs 23.33 crore to the transporter. Subsequently, the federal government renewed the subsidy for this monetary 12 months, however with a restrict of Rs 50 crore.
In one other letter despatched to MoPFI Secretary, Railway Board Member (Operations and Business Development) SK Mohanty has written that in response to the expansion trajectory of the favored service, the subsidy quantity might be round Rs 110 crore by the top of this monetary 12 months.
“Indian Railways is making sincere efforts to increase the reach of Kisan Rail, so that all sections of our farming community and all geographical locations can benefit from this scheme – and as a result of these efforts, new routes and services are being added. on a regular basis,” wrote Mohanty.
Kisan Rail was launched on August 7, 2020, to deliver recent fruit and veggies from farmers to markets throughout India. MoPFI had launched the subsidy scheme in October that 12 months.
Under the “Operation Greens – Top to Total” scheme, which was notified by MoFPI, 50 per cent subsidy to farmers covers the price of transportation of fashionable produce, corresponding to tomato, onion and potato. The association was that whereas the farmers must transport their produce at half the speed, the railways would get the subsidy quantity from MoFPI.
Sources advised The Indian Express that officers from each side have been engaged in discussions for the previous two months to resolve the standoff.
Meanwhile, Railways is planning to improve the Kisan Rail Service. Sources stated that to maintain fruit and veggies recent out there, discussions are on to introduce air-conditioned coaches to move the produce based mostly on the suggestions from farmers in some components of Maharashtra. But introducing such a product would imply larger prices, officers stated.
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With inputs from TheIndianEXPRESS
