Centre releases partial cash credit for wheat procurement, asks Punjab to settle dues | punjab | Hindustan Times
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Centre releases partial cash credit for wheat procurement, asks Punjab to settle dues

The Union finance ministry and the RBI, in separate letters to principal secretary (finance) said the central government had decided to release the CCL immediately in view of the urgent need to procure wheat following early arrival of the grain in the mandis and the assurance of the State Bank of India (SBI).

punjab Updated: May 07, 2017 09:50 IST
HT Correspondent
A farmer in his wheat field during rain in Sular village near Patiala on Wednesday, April 5.
A farmer in his wheat field during rain in Sular village near Patiala on Wednesday, April 5.(Bharat Bhushan/HT)

The Centre on Wednesday released an amount of Rs 17,994 crore towards cash credit limit (CCL) for Punjab’s wheat procurement subject to certain conditions as laid down by the Reserve Bank of India (RBI).

The Union finance ministry and the RBI, in separate letters to principal secretary (finance) said the central government had decided to release the CCL immediately in view of the urgent need to procure wheat following early arrival of the grain in the mandis and the assurance of the State Bank of India (SBI).

The CCL has been released up to the end of April on the condition that the state government would regularise, at the earliest, the outstanding balance in the food credit account of the kharif marketing season 2016.

The SBI will release funds on submission of Letter of Consent under Article 293(3) of the constitution; the RBI informed the Punjab government through its letter.

The RBI has directed the state government to ensure that all its food credit accounts are always backed by fully paid stock value as per norms. The state government would also be required to route all its requests to the Government of India for availing CCL through the state finance department.

Punjab CM Captain Amarinder Singh had met Union finance minister Arun Jaitely on the issue and subsequently followed up through telephonic calls.