Maharashtra food scam: Private companies eat up Rs 1,000cr meant for poor

November 3, 2012

poor_pay

New Delhi, November 3: Private companies have hijacked the government's flagship scheme to provide food to poor children and their mothers, the Integrated Child Development Scheme (ICDS), with contractors in Maharashtra alone controlling Rs 1,000 crore worth of supplies in contravention of Supreme Court orders, a report of the SC commissioners office has said.

The SC orders bar contractors from supplying rations under the scheme. It only permits village communities, self-help groups and mahila mandals to buy grains and prepare food for children.

The commissioners' report, submitted to the court on Friday, warned that the contractor-corporate lobby had a firm grip over ICDS rations supply business, worth Rs 8,000 crore, in several states. It specifically referred to Karnataka, Uttar Pradesh and Meghalaya, besides Maharashtra.

Detailing Maharashtra's case, the report said private companies had floated fronts in the names of 'mahila mandals' or women's organizations to corner the lucrative Rs 1,000 crore annual supply of rations.

The ICDS is India's primary social welfare scheme to tackle malnutrition and health problems in poor children below 6 years of age and their mothers. It is considered the backbone of government's efforts to improve the dismal family health indices in India - some of the worst even among developing countries.

The commissioners recommended that an independent investigation be conducted under the apex court's supervision to investigate the possible nexus "between politicians, bureaucrats and private contractors in the provisioning of rations to ICDS, leading to largescale corruption and leakages".

The report, prepared by the principle advisor to the commissioners, said the Maharashtra chief minister had been made aware of the scam by the commissioners as well as the National Commission for the Protection of Child Rights. They said the fact that the corrupt system continued unchecked showed the "level of influence" the contractors had over the "levers of power in Maharashtra".

This report lays bare the modus operandi companies used to corner the lucrative contracts in Maharashtra. The state government first changed its rules in 2009 to allow not only community-based organizations but also 'women's institutions' to bid for the supply - a loose enough term to permit any contractor, company or agency with women on board to bid for the contracts.

Only three of these 'women's institutions' got contracts for the entire state's ration supply which is worth over Rs 1,000 crore annually. None of these three mahila mandals - Venkateshwara Mahila Audhyogic Sahakari Sanstha, Mahalaxmi Mahila Grhaudyog & Balvikas Buddhesiya Audhyogic Sahakari Sanstha and Maharashtra Mahila Sahakari Grahudhyog Sanstha Limited -- had any production capacity of their own.

The three mahila mandals each formed sub-committees with select members handling complete control of administration, finances and operations of the organizations. The sub-committees then gained legitimacy by directly contracting with the state government, securing bank guarantees as well as opening separate bank accounts.

The sub-committees went on to contract five companies to supply the rations. But the members on board these sub-committees were all relatives of the owners of the five companies.

In other words, the companies had formed shell agencies to bid for the contracts on the pretext of being community-based women's organizations.

Venkateshwara formed two sub-committees. One sub-committee farmed out contract to Swapnil Agro Limited owned by Ulhas Pagariya. The sub-committee comprised Pagariya's wife and two relatives. The second sub-committee gave a contract to Paras Agro Private Limited, with one Satishrao Munde as managing director. Munde's wife and daughter comprised the sub-committee.

Similarly, Mahalaxmi formed three sub-committees giving out contracts to Indo Allied Protein Foods run by Rajan Shankar Jadhav, Sai Food and Sai Food Products owned by Pradip Auradkar and Sanjay Auradkar and Kota Dal Mill based in Rajasthan.

Maharashtra Mahila Sahkari, which is actually a company and not a society with Rama Agrawal as vice-chairman, gave the contract to Sagar Foods run by her father-in-law Prabhudayala Agarwal.

The principle advisor to the court commissioners, Biraj Patnaik, refused to comment when contacted.

His report said lab reports testing the quality of food grains supplied was also suspect as all three mahila mandals went to the same private lab but government testing found the food lacking. The report said media had earlier highlighted how the ration was of such bad quality that it was at times sold as cattle feed and many times, fungi and termites were found in them. A case on the matter is being heard in the high court as well.

The author added that the report should be seen as a preliminary inquiry and not a comprehensive indictment of the parties. They have asked for court directions for an independent authority carrying out an investigation. The apex court gave the state the opportunity to respond to the report and posted the next hearing for November 23.


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News Network
May 5,2020

New Delhi, May 5: India registered the biggest jump in numbers of COVID-19 cases and deaths, with 3,900 new cases and 195 deaths being reported in the last 24 hours, according to the Ministry of Health and Family Welfare on Tuesday.

"3,900 COVID-19 cases and 195 deaths have been reported in the last 24 hours, the largest spike till now in both," according to the Ministry of Health and Family Welfare.

The total number of confirmed coronavirus cases in India reached 46,433, including 1,568 deaths, according to the Union Ministry of Health and Family Welfare on Tuesday.

According to the latest update by the MoHFW, 12,727 patients in the country have been cured and discharged, or have migrated, as of today morning. At present, there are 32,138 active cases in the country.

Maharashtra with 14,541 cases is the worst-affected state by the disease, while Gujarat with 5,804 cases is second on the list.

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News Network
May 30,2020

New Delhi, May 30: As the NDA government completes one year of its second term, Prime Minister Narendra Modi listed several achievements and initiatives taken by his government in the past year in an audio message addressed to the people of the country.

PM Modi said, "This day last year began a golden chapter in the history of Indian democracy. It was after several decades that the people of the country voted back a full-term government with a full majority."

"Your role has played a pivotal role in creating this chapter. In such a situation, this day is an opportunity for me to bow to the citizens of the country and the democratic ethos of our nation," said PM Modi.

"Had the situation been normal, I would have got the chance to meet you. Your affection and active support in the past year have given me new energy and inspiration. During this period, the way you have shown the collective powers of democracy, they have become an example for the whole world," he added.

PM Modi talked about several important initiatives taken by his government in 2014 as well as India's demonstration of its mettle through the surgical strike and airstrike.

"Six years ago in 2014, the people of this country voted to bring a major change in the country. You voted to change the country's policy and manner. During that tenure where surgical strike and airstrike took place, one rank one pension, one nation one tax GST, and better MSP for farmers were also fulfilled. That period was dedicated to fulfilling many needs of the country."

He further said that in these years the country has seen systems coming out of the quagmire of inertia and corruption. The country has seen governance change to make life easier for the poor.

"During that period, India's stature in the world increased. By opening bank accounts of poor people, by giving them gas connections, by providing free electricity connections, by building washrooms, by building houses, the dignity of the poor has also been increased," said PM Modi.

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News Network
January 24,2020

New Delhi, Jan 24: Although India's Ujjwala programme encouraged adoption of liquefied petroleum gas (LPG) for cooking among the poor, households availing the scheme have not shifted away from using highly polluting fuels like firewood, a study reveals.

The researchers, including those from the University of British Columbia (UBC) in Canada, found that additional incentives to encourage regular use of cooking gas are necessary for a complete transition to clean cooking fuel among poor rural households.

They noted that about 2.9 billion people across Asia, Africa, and Latin America burn solid fuels like firewood to meet their cooking energy needs.

This has significant negative implications for public health, the environment, and societal development, according to the researchers.

Through the Pradhan Mantri Ujjwala Yojana (PMUY), India has provided capital cost subsidies to poor women to adopt a clean-burning cooking fuel or LPG.

The researchers explained that within the first 40 months of the scheme, more than 80 million households obtained LPG stoves.

However, the full benefits of LPG adoption depend on near complete replacement of polluting fuels with LPG, according to a research-based policy brief published in the journal Nature Energy.

The scientists said this cannot be assumed solely on the basis of LPG presence in the household.

"Our research shows that Ujjwala was able to attract new consumers rapidly, but those consumers did not start using LPG on a regular basis," Abhishek Kar, a postdoc at Columbia University in the US, told PTI.

The study analysed LPG sales data for over 25,000 consumers, including PMUY beneficiaries, as well as general rural LPG consumers in Koppal district of Karnataka.

The scientists employed data covering all LPG purchases of PMUY beneficiaries through their first year in the programme.

They also assessed the general rural population's purchases during their first five years as consumers to assess the effect of experience on use.

The findings estimate that an average rural family needs to purchase five 14.2 kilogramme-cylinders annually to meet half of their cooking needs.

However, the study said just seven per cent of PMUY beneficiaries in Koppal purchased five or more cylinders annually, suggesting that the beneficiaries seldom use LPG.

The general (nonPMUY) consumers in this region use on average two times more LPG cylinders than PMUY beneficiaries, the researchers noted.

Yet, only 45 per cent of nonPMUY consumers use five or more cylinders per year -- even after several years of experience with LPG, they said.

The team assessed price and seasonal factors affecting LPG use among the general population over a three-year period.

It found that LPG consumers are sensitive to price and seasonality -- LPG cylinder refill rates are lower in the summer when agricultural activity is limited, and cash is scarce.

"There was no scheme incentives to promote use, except general LPG subsidies which is available to all, including the urban middle class," said Kar, who was a Ph.D. scholar at UBC when the research was published.

"If there is no additional income, what cost would a poor family on an already tight budget cut to pay for an extra expense on a regular basis.

"Ujjwala has started the scheme of 5 kg-cylinder in response, but the impact of that on LPG sales is still publicly unknown," he said.

These findings, the researchers noted, suggest the need for additional measures to promote regular LPG use for all rural populations.

Although the finding come from a single district in Southern India, it may also apply to other areas with similar socio-economic conditions, they said.

A more expansive evaluation of PMUY would help design targeted incentives to transform infrequent users to regular users, according to the researchers.

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