The Centre on Wednesday released an amount of Rs17,994.21 crore towards the Cash Credit limit (CCl) for Punjab’s Rabi procurement, subject to certain conditions as laid down by the Reserve Bank of India (RBI).
The Union Finance Ministry and the RBI, in separate letters to Punjab Principal Secretary (Finance), stated that the Central Government had decided to release the CCl immediately in view of the urgent need to procure wheat following early arrival of the grain in the mandis and the assurance of the State Bank of India (SBI).
The CCl has been released for the Rabi season, up to the end of April, on the condition that the State Government would regularise, at the earliest, the outstanding balance in the food credits account of the Kharif Marketing Season 2016.
The SBI will release funds on submission of letter of Consent under Article 293(3) of the Indian Constitution, the RBI informed the Punjab Government through its letter.
The RBI has directed the State Government to ensure that all its food credit accounts are always backed by fully paid stock value as per norms.
The State Government would also be required to route all its requests to the Centre for availing CCl through the state Finance Department.
The CCl clearance by the Central Government follows Chief Minister Capt Amarinder Singh’s intervention in the matter who had personally met the Union Finance Minister Arun Jaitely on the issue and subsequently followed up through telephonic calls.
Jaitley had assured Capt Amarinder that the Finance Ministry had directed RBI to release the payment to ensure that the Rabi procurement in the state is smooth and hassle-free for the farmers.