Centre Withholds Rs 7,000 Crore as West Bengal Fails to Display PM Modi's Photos and NFSA Logo at Ration Shops

In an ongoing tussle between the Chief Minister Mamata Banerjee-led West Bengal government and the Centre, the state's failure to display signboards and flexes featuring the National Food Security Act (NFSA) logo and photographs of Prime Minister Narendra Modi at ration shops has resulted in a significant financial setback. The Centre has decided to withhold the release of Rs 7,000 crore earmarked for the state government to procure paddy for central schemes, according to a report by The New Indian Express.

Despite repeated reminders, the West Bengal government has not “complied” with the Centre's directive to display the NFSA logo and images of Prime Minister Narendra Modi at all ration shops across the state. This has prompted the Centre's decision to withhold substantial financial assistance, said the report.

State government officials expressed concerns about the potential consequences of the Centre's refusal to reimburse the allocated funds. The frozen reimbursement of Rs 7,000 crore could adversely affect paddy collection in the ongoing financial year, impacting the state's agricultural initiatives.

“The state government has already procured 8.52 lakh tonnes for the NFSA schemes in this financial year for the central pool. It has procured 22 lakh tonnes of paddy, including the volume for the central pool, against its annual target of 70 lakh tonnes this year. But the state government is yet to be reimbursed for the paddy it procured on behalf of the Centre. The freezing of the Centre’s reimbursement will have an immediate impact on paddy procurement in the ongoing Kharif season,” a state government official was quoted as saying.

An official from the state government told the daily that there will be an immediate impact of the Centre's decision on paddy procurement in the ongoing Kharif season. The state has set a target to procure 80% of its annual target of 70 lakh tonnes during the Kharif season, which extends until February-end. “If the state does not get enough funds during this window, the entire process will be hit,” said another official, talking to The New Indian Express.

Sources within the state government revealed that the Centre had previously requested the West Bengal government on multiple occasions to install signboards and flexes featuring Prime Minister Narendra Modi's photos and the NFSA logo at all ration shops.