Paddy procurement in Punjab: Centre extends cash credit limit validity till Feb-end

This has paved the way for clearing the outstanding dues of arhtiyas (commission agents) who are complying with the norms under public financial management system

Acceding to the request of chief minister Captain Amarinder Singh, the Centre on Monday extended the validity of the cash credit limit (CCL) for procurement of paddy during the kharif marketing season 2019-20 in Punjab up to February 29.

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This has paved the way for clearing the outstanding dues of arhtiyas (commission agents) who are complying with the norms under public financial management system (PFMS), and the Reserve Bank of India (RBI) is all set to release ₹200 crore on this account on Tuesday.

Disclosing this on Monday, a spokesperson of the chief minister’s office said the extension in validity would help the state government clear the pending dues of arhtiyas on account of their commission, which could not be settled due to non-implementation of PFMS expenditure, advance and transfer (EAT) module by them as mandated by the Centre.

The total liability on account of the arhtiyas’ commission stood at ₹750 crore, of which ₹362 crore has already been paid to arthiyas who are PFMS EAT module compliant.