Punjab govt gives nod to settlement scheme for defaulting rice millers

The Punjab government on Monday gave its nod to the Dues Recovery and Settlement Scheme 2019-20 for defaulting rice millers and said it will pave the way for recovery of a significant portion of Rs 2,041.51 crore outstanding against them.

Defaulting rice millers, up to and including crop year 2014-15, shall be eligible to take benefit of this scheme, an official spokesman said after the Cabinet meeting.

However, the scheme excludes defaulters who had availed the 'One Time Settlement' scheme of September 2017, the spokesperson said.

The defaulters would have the option to pay the total recoverable amount, which is the principal recoverable plus 10 per cent simple interest per annum, within 30 days from the date of issue of 'Quantification for Settlement Letter'.

They can also choose to pay 50 per cent of the total recoverable amount within 30 days and the balance within 60 days from the date of issue of 'Quantification for Settlement Letter' with six per cent interest, the spokesperson said.

A detailed Standard Operating Procedure (SOP) for settlement of claims under this scheme would be issued by Director Food and Supplies.

The government had recovered Rs 32.40 crore against outstanding principal amount from millers through the One Time Settlement (OTS) scheme issued in September 2017, which had remained operational for six months.

Meanwhile, the Cabinet also approved custom milling policy for paddy(kharif 2019-20) with more security provisions, including criminal penalty for diversion of rice.

The scheme, aimed at ensuring seamless milling of paddy and smooth delivery of rice to the central pool from more than 4,000 mills operating in the state, would be followed by state procuring agencies.

The sole criterion for allotment of free paddy to mills during kharif marketing season 2019-20 would be the miller's performance in the previous year.

Mills, which had completed their milling by January 31, 2019, would be eligible for additional 15 per cent of free paddy, the spokesperson said, adding that those who had completed delivery of rice by February 28, 2019 would get an additional 10 per cent of freepaddy.

To ensure security of paddy stocks, millers this year would be required to furnish bank guarantee equal to the value of 5 per cent of acquisition cost of allocable freepaddyabove 3,000 metric tonne (MT).

The move would further enlarge the ambit of guarantee clause to over 1,250 more rice mills, taking the total number of such mills to around 1,900.

To guard against any diversion of rice, a provision for initiation of criminal proceedings under relevant sections of the Indian Penal Code (IPC) and Essential Commodities Act (ECA) has been added in case such practice is detected.

The rice miller would be required to ensure that thepaddy/rice purchased and stored in the mill is genuine trade commodity and not diverted from rice meant for welfare schemes.

The state is expected to procure 170 lakh MT of paddy with total area underpaddysowing being 29 lakh hectares this year, down from 31.03 lakh hectares in the previous season.