Citing fund crunch, govt drops subsidised festival kits scheme

The Ananadacha Shidha scheme provided essential groceries to low-income families during festivals for only ₹100

MUMBAI: The Maharashtra government on Monday made it clear that Anandacha Shidha, the subsidised festival kits scheme, would not be implemented this year. The decision was taken on account of financial constraints, revealed state food and civil supplies minister Chhagan Bhujbal.

The Ananadacha Shidha scheme provided essential groceries to low-income families during festivals for only ₹100. (@ShelarAshish/X)

Under the scheme, which was launched on October 4, 2022 by then chief minister Eknath Shinde, the food and civil supplies department would provide a ration kit to 16.1 million families. The kit, costing ₹100, had one kg each of sooji, chana dal and sugar and one litre of edible oil and set the exchequer back by ₹350 to ₹450 crore per festival. It was distributed on eight occasions till July last year.

“We had sent a proposal to the finance department so that we could start the process of kit distribution during Ganeshotsav and Diwali,” Bhujbal said on Monday. The department replied that given the financial constraints, it would not be possible to implement the scheme this year.”

The minister said that compensation for the flood-hit was one of the financial constraints, the other being the Ladki Bahin scheme. “We have been spending ₹35,000 to ₹40,000 crore annually on Ladki Bahin alone, which will ultimately have an impact on other schemes and expenses,” he remarked. His department has been implementing the Anandacha Shidha scheme. The finance department is headed by NCP president Ajit Pawar.

Bhujbal further revealed that the money crunch was across departments. “The backlog of the public works department went up to ₹94,000 crore, as a result of which contractors are not taking up new work contracts and are asking the government to release the pending amount,” he pointed out.

The opposition, meanwhile, declared that Ladki Bahin had nothing to do with Anandacha Shidha being discontinued—it was the huge corruption inherent in Anandacha Shidha which had burdened the exchequer. “Over the past two years, thousands of crores have been embezzled in this scheme,” said NCP (SP) MLA Rohit Pawar. “The government purchased each kit for ₹350 when its actual cost is ₹250.”

Rohit added that despite his repeatedly raising the issue, the government had chosen to ignore the scam in order to give undue benefit to a firm connected to a BJP MLC. However, he did not name the MLC.

Bhujbal dismissed the allegations as “unfounded”. “We issued tenders to appoint a firm to supply the kits,” he said. “The rates at which the commodities were procured are in the public domain. One also has to spend on packaging and transportation among other expenses.”

NCP (SP) state president Shashikant Shinde claimed that the scheme was discontinued because it was started by Eknath Shinde when he was chief minister.