Anomalies in transport subsidy schemes: Centre directs NPC to probe

NEW DELHI, February 3: Alarmed at reports of massive irregularities in transport subsidy schemes in the Northeast, the Union Industries Ministry has directed the National Productivity Council (NPC) to probe the allegations and recommend measures to plug the loop holes in the schemes. The joint Secretary in the Ministry of the Industries, S. Jagdessan, who is in-charge for the Northeast, told this newspaper that the NPC has already submitted its draft report to the Ministry recently. " We have received the draft report and are expecting the final report soon after which it would be released," he said. The officials at the Union Industries Ministry said they are appalled at the reports of gross irregularities in the transport subsidy schemes, which indicated existence of a nexus, which is regularly cornering a large chunk of subsidies reimbursed by the Union Government for development of industries in the region. The scheme which is applicable in the States of Jammu and Kashmir, Himachal Pradesh, North Bengal, the Union Territories of Andaman and Nicobar and Lakshadeep Islands besides the Northeastern States, envisages to make good the additional transportation cost incurred by the industrialists in the far-flung States. The Scheme has been extended up to 2007 in the Northeastern States following pressure by the State Governments. The Central Government has since 1976-77 till 1999-2000 reimbursed around Rs 530.77 crore as transport subsidy to the States. Of this amount a large chunk has gone to the Northeastern States.