New Delhi: Punjab Chief Minister Amarinder Singh has reiterated his demand for the implementation of the 'principle of shared responsibilities' by the Centre to settle the Rs 31,000 crore cash credit limit gap amount that had been converted by the central government into long-term loan.  

In separate letters to Prime Minister Narendra Modi and Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan, Singh said the cash credit limit (CCL) gap cannot be solely attributed to the state of Punjab.  

The gap, the chief minister said in his letter, had arisen due to systemic and structural reasons, and should be addressed through the 'principle of shared responsibilities' amongst all stakeholders in the procurement process of food grains in Punjab.  

Following his letter dated January 15, a meeting on the matter was held at the level of Secretary Expenditure, Government of India on February 20, in which representatives of the Department of Banking, Department of Food and Public Distribution, and the Government of Punjab had participated.  

However, no decision has yet been taken, he added, urging the prime minister to intervene in the matter to operationalise the suggested principle of shared responsibilities amongst the Government of India, the Government of Punjab and the consortium of banks.  

Meanwhile, in separate letters to Paswan, the Punjab chief minister has raised the issue of release of the pending VAT payment as well as non-reimbursement of the actual expenditure on procurement of gunny bags, to the State Procurement Agencies.  

Singh also drew the minister's attention to his earlier communication of March 26, regarding reimbursement of VAT amounting to Rs 952 crore to the State Procurement Agencies.  

"Though, the Food Corporation of India (FCI) has admitted that the amount of VAT paid by the State Procurement Agencies is to be reimbursed, no further progress has yet been reported," he observed, adding that as a result, the agencies had to borrow to fill the gap for timely authorisation of CCL for the current Rabi marketing season.  

The letter further said that the FCI and the Ministry of Consumer Affairs, Food and Public Distribution evidently could not release the requisite amount due to non-availability of funds during the previous year. However, the funds are available now and, therefore, reimbursement of VAT paid by the State Procurement Agencies should be expedited, the chief minister has requested.  

On the issue of the gunny bags, Singh said the actual cost incurred on their procurement, including the basic cost, interest, handling and transportation cost was not reimbursed to the State Procurement Agencies.  

The Congress leader urged the ministry and the FCI to reimburse the actual cost of gunny bags to Punjab as these are purchased for food grains procured on behalf of the Government of India. The wheat procurement season is currently in full swing in Punjab with 44.63 Lakh MT been purchased in the mandis till April, 19. PTI