The Horticulture Department “might have to forego” about ₹300 crore if the State government did not release funds which it received from the Central government under various Central Sponsored Schemes (CSS) immediately.
The department could not submit the Utilisation Certificates (UCs) for the first instalment to the Centre so far. The officials are worried that the Centre might refuse to release the second instalment.
The issue has been brought to the notice of higher-ups in the Finance Department and was also raised in “the review meetings but in vain.”
The Centre has released funds under Mission for Integrated Development of Horticulture (MIDH), Pradhans Mantri Krishi Sinchayee Yojana (PMKSY), which is rechristened as Per Drop More Crop (PDMC), Rashtriya Krishi Vikas Yojana (RKVY), and oil palm. All these are all CSS with 60:40 funding (share of the Centre and the State respectively). The bills worth ₹583 crore relating to these schemes are pending, sources say.
Utilisation Certificates
“The funds released by the Centre have been parked with the State government. Unless the funds are released we cannot submit the UCs and claim for the second instalment. In the process, we may have to lose ₹300 crore soon,” says an official, who did not want to be named.
The immense delay in the release of funds is adversely affecting the implementation of schemes.
The farmers have been pressing the horticulture officials on release of subsidy portion under various schemes.
The subsidy amounts were pending across the State under Centrally-sponsored schemes, including PMKSY, MIDH, RKVY and National Mission for Oilseeds and Oil palm (NMOOP). In addition to the Centrally-sponsored schemes, the State government is implementing the State Development Plan. There are dues under this head too, sources say.
The previous government set a target of bringing at least one crore acres under horticulture in the State and came up with “many promotional schemes” in the form of subsidies to attract the farmers.
They were encouraged to take up fruit, flower and vegetable cultivation. Subsequently, the farmers applied for assistance under many schemes.
Subsidy component
As many as 2.5 lakh farmers, who have made investments by taking loans, are waiting for the government to release the subsidy portion. They availed the schemes for construction of shade nets, polyhouses, pack houses, etc. Under the schemes, the government would give a subsidy of 50%, which ranges between ₹2 lakh and ₹20 lakh, if a farmer constructs shade nets or polyhouses.
Likewise, the government extends 100% subsidy if community farm ponds are constructed.
A 50% subsidy is given if individual farm ponds are constructed. This subsidy would be up to ₹75,000, source say.
