Government Refuses to Pay Extra Kisan Rail Subsidy

The Ministry of Food Processing Industries refused to cover the additional expenditure, claiming a Rs 50-crore cap for the project, causing the Railways to write off Rs 71.86 crore it spent as excess subsidy on Kisan Rail Services last fiscal.

Official figures show that the Railways paid Rs 121.86 crore as a subsidy under the plan, more than double the Rs 50 crore that the Ministry of Food Processing Industries (MoFPI) had approved in 2021–2022 for the pro-farmer initiative.

The MoFPI, the nodal ministry for executing the "Operation Greens - TOP to total" scheme, under which Kisan Rails operate, decided not to pay the overdue amount, causing the national transporter to "write off" the extra expenditure of Rs 71.86 crore.

According to the scheme, farmers and traders will get a 50% discount on fruit and vegetable railway transportation costs. The MoFPI fixed the limit for subsidies for the previous fiscal year at Rs 50 crore. The amount is reimbursed by the MoFPI.

In response to a PTI inquiry, the Railways stated that the MoFPI was responsible for implementing the subsidy. According to it, the Railways spent Rs 121.86 crore between 2021 and 2022, but the MoFPI only reimbursed Rs 50 crore.

"The matter of reimbursement of the remaining sum of Rs 71.86 crores was raised with MoFPI on several occasions. However, MoFPI has said that it is not possible to provide any further funds for the purpose, leaving no room for its recovery.

"In the Railway A/C books, this remaining amount of Rs. 71.86 crores were displayed as outstanding. So, with the minister of railways' agreement, the same has been written off,” the ministry said PTI.

This comes at a time when the Railways has instructed its zones to be more careful with their spending and all fare discounts remain halted.

By linking production centers to markets and consumption centers, the Kisan Rail Services were introduced in August 2020, right at the heart of the coronavirus pandemic.

According to official statistics, 1,851 trains were operated under the services in 2021–22, and as of August this year, 63 have been operated.