To avoid running into problems of funds disbursal, the Delhi Cabinet has decided that the subsidy to Khadi Gramodyog Bhawan would be sent directly to it from the Centre and that the government will have no role to play.
The weavers' body gives discounts to consumers in anticipation that the money would come back in the form of government subsidy. However, the confusion between the Centre and the Delhi government on who will reimburse the weavers' body has deprived the weavers of Rs 6.9 crore.
After four-and-a-half years of files moving from one table to the other and the weavers' body repeatedly knocking at the government's doors, the Delhi Cabinet on Thursday decided to release the amount.
"The Cabinet decided to release the amount to the Khadi Village Industries Commission (KVIC)," Delhi industries minister Haroon Yusuf said.
According to senior Delhi government officials, the central government always reimburses the subsidy. It pays the Delhi government, which in turn passes on the money to the KVIC.
Officials said the Delhi government hadn't received any money from the Centre, resulting in the delay.
"In future, the subsidy will go directly to the KVIC. Delhi government will have no role," a senior Delhi government official said.
The Cabinet has also decided to discuss the issue of the management of Asha Kiran Complex - a home for the mentally challenged - in the next meeting on November 22.
The social welfare department, which runs the overcrowded complex, had decided to shift its inmates to two new houses at Bindapur and Dwarka. The department had also hired two non-government organisations to run these homes.
Social welfare minister Mangat Ram Singhal had recently complained to the chief minister that his department never took his approval to hire the NGOs.