Mismanagement in Civil Supplies Corpn: NUMM

Source: The Hitavada      Date: 04 Jul 2017 11:17:38


Staff Reporter,

As per CAG report, the Madhya Pradesh State Civil Supplies Corporation in past five years from 2011 to 2016 has faced losses in crores

The Nagrik Upbhokta Margdarshak Manch (NUMM) raised an important issue of irregularities and mismanagement in Civil Supplies Corporation, Madhya Pradesh causing huge losses in procurement and transportation of grains as per its mandate. The NUMM Youth Cell has written a letter to Chief Secretary, Government of Madhya Pradesh, complaining in this regard, mentioning that in corporation, owing to mismanagement, huge losses were incurred, which would be a burden on the pocket of common men.

As per Companies Act, 1956 in April 1974 in the State for the procurement, distribution, storage, conservation and transportation, the Madhya Pradesh State Civil Supplies Corporation Limited Company was constituted.

Manish Sharma, Divisional President of the NUMM YC apprised that as per recent report of Comptroller and Auditor General of India (CAG), the Madhya Pradesh State Civil Supplies Corporation in past five years from 2011 to 2016 has faced losses in crores. The profitability of the company went down in 2015 from 2011, causing loss of Rs 69.12 crore. The financial condition of the company got derailed due to non-recovery of Rs 4,848.28 crore dues from Food Corporation of India, Government of India and Government of Madhya Pradesh.

Owing to failure in real assessment of wheat and paddy procurement from year 2011 to 2015, the company has faced losses of Rs 114.40 crore from 2011 to 2015. Due to over procurement of sacks from 2011 to 2015, a loss of Rs 176.01 crore was incurred by the company. Due to difference in lead rates in cities, the transportation expenses were paid at higher rates for transportation. The shortcoming of storage claimed Rs 103 crore recovery could not be made between 2013-16. Due to delay in management of damaged stock, Rs 1.25 crore loss took place. In these losses, the shortage of skilled and trained staff in different works also become a major reason.

Youth Cell members Dr Rakesh Chakrabarty, Rakesh Samundre, Ram Milan Sharma, Dilip Chamkele, Ashok Tamia, Vikas Janvar have demanded the State Government to provide funds to ensure financial strengthening of the company. The State Government should provide funds 50 per cent in advance for procurement of grains so that the corporation could perform its routine works in general way.