The Comptroller and Auditor General of India (CAG) has pulled up the Government for multiple lapses in the implementation of the Public Distribution System (PDS) in the Union Territory.
In its performance audit of the Civil Supplies Department for the year ended March 31, 2014, the CAG identified several holes in the PDS basket that ranged from over-identification of BPL beneficiaries that reduced monthly entitlements, excess expenditure in sourcing APL rice instead of BPL quota, failure to avail the Central subsidy, discrepancies in number of Antyodaya Anna Yojana (AAY) cards and avoidable excess payment towards sales tax.
In an elaborate discussion on the “shortfalls” in identifying eligible beneficiaries to be covered under PDS in the UT, the CAG pointed out that while the Government of India had made BPL rice allocation only for 83,600 BPL cards at the rate of Rs. 35 per kg per family, the UT Government issued BPL cards far in excess of that number---there were 1.44 lakh BPL card-holders as of March 2014.
Drawing attention to the CAG report as far back as in 2007 which had highlighted the UT’s non-compliance with Central orders to limit BPL cards as per Planning Commission estimates even then, the audit report pointed out that as the Government of India continued to make allocation only for 83,600 cards, the UT was forced to distribute the limited allocation among almost double the number of beneficiaries. As a result, the quantity of PDS foodgrains supplied to BPL cards was limited to 25 kgs instead of the entitlement of 35 kgs.
Noting that the Government had responded that BPL families were identified as per enumeration during 2003-04, the CAG stated that it was an undeniable fact that BPL card holders were deprived of 10 kg of PDS foodgrains every month.
The audit also found that the quantity of foodgrain allocation by the Centre under the AAY was in excess of the requirement and that the UT Government had furnished incorrect details to the Government of India and diverted the surplus stocks.
The CAG detected a drain of Rs. 21.51 crore due to circumstances resulting in its delay in availaing of the Central subsidy under Decentralised Procurement System.
The CAG found that during September 2013, the requirement of BPL rice in the UT was 1,688 metric tonnes while the Government allotted 1,344 MT.
However, the PAPSCO lifted only 481.930 MT from the allotment allowing the remaining share of 862.07 MT to lapse. However, in order to meet the balance requirement of 1,206 MT under the BPL category, PAPSCO lifted 169 MT of AAY rice and 1,037 MT of APL rice.
“Though the cost of APL rice was lower than BPL rice, the cost of APL rice was much higher and this led to avoidable excess expenditure of Rs. 22.84 lakh,: the CAG noted.
The Centre allocates rice under AAY, BPL and APL slabs at Central Issue Price of Rs. 3,000 per MT, Rs. 5,650 per MT and Rs. 8,300 per MT respectively and allows States/UTs to draw the allocation within a period of 50 days.
PAPSCO also made excess sales tax payments to the Kerala Government while procuring PDS rice and wheat from the FCI there for distribution in Mahe by raising invoices at 2 per cent CST whereas Kerala had revised the CST on rice from 2 per cent to nil and retained 1 per cent tax on wheat.
The CAG’s other important findings included diversion of PDS kerosene in Yanam for sale in Puducherry, delay in renewal of licences of Fair Price Shops, weak monitoring of FPS outlets and failure to establish a Vigilance Committee at various tiers of Civil Supplies administration in spite of assurances to do so.
