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Cash-strapped Punjab mandi board to put 175 properties under hammer
At least 175 properties owned by the cash-strapped Punjab State Agricultural Marketing Board, popularly known as mandi board, would go under hammer next month
At least 175 properties owned by the cash-strapped Punjab State Agricultural Marketing Board, popularly known as mandi board, would go under hammer next month. The process of auction has started as the board has invited bids for the properties.
Sale of properties will ease out financial stress, which the board is suffering from, due to non-release of rural development fund (RDF) by the Centre during past three foodgrain procurement seasons and curtailment of the mandi fee from 3% to 2%, leading to a shortfall in board’s earning by ₹3,880-crore.
“We expect to raise ₹100-crore from this auction, which will help in maintaining the day-to-day expenses of the board,” said a board officer on the request of anonymity. He added that due to financial crunch the board is completing the works that have been started in the past but have stopped making fresh proposals.
The properties which would go under the hammer next month include those in Khasi Kalan, Ludhiana (24); Mamdot, Ferozepur (21); Rajpura, Patiala (14); Morinda, Ropar (16); Gidderbaha, Muktsar (27); Dera Baba Nanak, Gurdaspur (23); Jalandhar (20) and 15 each in Kalanaur, Gurdaspur and Jandiala, Amritsar.
These properties include plots to construct shops, godowns and offices in the mandis, grain markets and procurement centers of the state. The official added that the board has large inventory with 1,872 mandis having around 10,000 plus properties waiting to be auctioned. According to the official, sale of properties is a routine affair for the board for past many years as every year auctions are held thrice a year, twice after rabi and kharif procurement in April-May and during November-December, and once in February. However, the funds generated now when board is in a fiscal constraint, will be the regular source of cash flow.
In the absence of RDF, which the state accrues on foodgrains (wheat and paddy) from the Centre at the rate of 3%, it is unable to repay loans which the government has raised in the past pledging future incomes.
A loan of ₹4,600-crore was raised in 2017 to fund debt waiver to farmers and ₹800-crore in 2021 for development works. To pay back the instalment of ₹4,600-crore loan, which is scheduled by June 30, the board has asked the state’s finance department to release ₹545-crore.
