Ration distribution on brink of closure; Govt yet to clear dues of Rs 317 crores

THIRUVANANTHAPURAM: The government is yet to complete the dues of Supplyco for distributing essentials to ration shops. Amidst the financial straits, Supplyco has also stopped paying the rent to vehicle contractors. The contractors have to be paid Rs 63 crores. With this, the Transport Contractors Association has decided to stop the distribution.

They have indicated that the distribution would be stopped once this month's supply is completed. With this, the operation of ration shops will come to a standstill and people will be pushed into an ordeal. Vehicle contractors, godown rent and labour wages are all due and the government has to pay Supplyco Rs 317 crore to alleviate the concerns.

The one-month expenditure in Suppylco crosses Rs 21 crore. As of now, Supplyco has managed to conduct the distribution uninterrupted by rolling money from their coffers. However, this was hindered for the last three months with Supplyco unable to find ways to get past the financial doom.

Rice delivered by the Center to FCI godowns is transported to NFSI godowns controlled by Supplyco and then to ration shops by transporting contractors. When Supplyco was profitable, expenses including transportation continued uninterrupted. During that time, Supplyco would have paid the contractors even if the government delayed payment. There was some relief last March when Rs 200 crore was released and prices of subsidized goods were allowed to increase.