Bengal govt says it cannot implement programme

In West Bengal, the number of people falling under below poverty line category stood at 24 million, according to the latest available data

With the food security scheme estimated to cost West Bengal over Rs 7,000 crore, the state government has decided to write to the Centre expressing its inability to implement the scheme in its present form.

 “According to our initial estimates, the state will have to shell out an additional Rs 7,000 crore to implement the project. The state government is in no position to take up this additional burden at a time when the state is going through a financial crisis. We have no money to implement the scheme, and Chief Minister Mamata Banerjee will soon write to the Central government about the state’s inability to bear such huge expense,” said Jyotipriyo Mullick, food and supplies minister, West Bengal.

In West Bengal, the number of people falling under the below-poverty-line (BPL) category stood at 24 million, according to the latest available data. About 28 per cent of the BPL population is in rural areas, and 22 per cent in urban areas , according to data from National Sample Survey Office’s 2009-10 survey. Among Indian states, West Bengal had the fifth highest number of BPL population.

The state’s debt burden is in excess of Rs 2 lakh crore, with the yearly repayment obligation of Rs 25,000 crore.

At present, the West Bengal government provides rice at Rs 2 a kg in Maoist-affected areas, which costs around Rs 500 crore to the state every year.

The Centre recently passed an ordinance to implement the food security Bill to provide subsidised food grains to two-third of India’s population.

The estimated annual foodgrains requirement is 61.2 million tonnes and the estimated food subsidy in 2013-14 is about Rs 1.25 lakh crore.

Up to 75 per cent of the rural population and 50 per cent of the urban population will have uniform entitlement of 5 kg foodgrains a month at prices of Rs 3, Rs 2 and Re 1 per kilogram for rice, wheat, and coarse grains, respectively.

The  National Food Security Bill states that  the Centre should provide foodgrains to state governments at a specific price, though state governments are free to extend benefits and entitlement beyond what is prescribed in the Bill. The Bill says the Centre will provide assistance to the states towards the cost of intra-state transportation, handling of foodgrains and fair price shop dealers’ margin.