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Clear one-third of arrears now or we shut outlets: Supplyco warns Kerala government

The Supplyco has warned the government that the outlets will have to be closed if at least one-third of the arrears is not cleared immediately. The minister of the department has also informed the Chief Minister that at least Rs 500 crore should be allocated immediately beyond the depth of the cash crisis.  

Clear one-third of arrears now or we shut outlets: Supplyco warns Kerala government rkn
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First Published Jan 2, 2024, 9:16 AM IST

Thiruvananthapuram: The Supplyco has warned the government that the outlets will have to be closed if at least one-third of the arrears are not cleared immediately.  The expert committee's report said that the subsidy rate will be revised from time to time according to the price changes in the market. The report on the price hike is expected to be discussed in the upcoming cabinet meeting.

Supplyco has arrears of around Rs 1600 crore due to its involvement in the market at various stages since 2016. None of the permanent contractors can even participate in the tender with over Rs 800 crore arrears. Supplyco continues its situation similarly as it faces a severe crisis, including the Christmas and New Year markets. The minister of the department has also informed the Chief Minister that at least Rs 500 crore should be allocated immediately beyond the depth of the cash crisis.  

Meanwhile, the report of the committee that studied the increase in the price of essential commodities is under active consideration by the government. There are considerations to adjust prices, ensuring a subsidy of no less than the maximum of 25 percent, a reduction from the current approximately 50 percent during the UDF period. Additionally, it is proposed to periodically revise the subsidy based on market price differences. The government's final decision on introducing subsidies for more products and promoting outlets will be crucial in shaping the future implementation of these measures.


 

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