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`No imposition of decentralised procurement'

Our Bureau

NEW DELHI, July 10

EVEN as the proposal relating to decentralised procurement is aimed at enhancing the efficiency gains for State Governments, the Centre had no intention to impose the new system on the States, according to the Finance Minister, Mr Yashwant Sinha.

He was addressing the first Standing Committee of Union Ministers and Chief Ministers on Food Management and Agricultural Exports, set up by the Prime Minister at the Conference of Chief Ministers in May.

Clarifying that the present arrangement would continue in States unable or unwilling to implement the decentralised system, he said that the Centre would not withdraw from procurement against the wishes of the States.

West Bengal, Uttar Pradesh and Madhya Pradesh have already implemented a decentralised system of procurement and have saved Rs 141.36 crore in 2000-01, according to an official release.

It was also decided that the food-for-work programme should be extended to support asset creation in rural areas. The proposal to establish grain banks was supported by most of the States.