Children denied nutrition in inter-govt. squabbles

AP Govt. contests dues to Telangana Foods

At a time when Telangana Foods at Nacharam here, a government owned unit which is producing fortified vitamin and mineral enriched food for children, is facing rough whether due to scaling down of operations, it is also locked in an inter-State issue arising out of non-payment of Rs. 98.02 crore dues by Andhra Pradesh government.

As a result, the Telangana government has cut off supplies to AP which restricted production at the factory leading to lay off of 200 contract workers. It is now working with only 60 contract workers and 260 regular staff, an official said.

AP is due Rs. 98.02 crore to Telangana for supply of ‘Balamrutam’ packets produced by Telangana Foods under an agreement with the latter government up to November 2014, six months after bifurcation of erstwhile State.

Counter claims

AP has cited its share in the factory as a Schedule IX Corporation under AP State Reorganisation Act while refusing to pay up.

A senior official of Andhra Pradesh told The Hindu that the conflict between the two governments over services extended by Schedule IX institutions was not limited to Telangana Foods alone.

There were claims and counter claims by governments in the matter of a number of corporations.

Balamrutam is a ready-to-cook packet weighing two-and-a-half kg each and meant for physical and cognitive development of infants. Its cost is Rs. 52.50.

Spare capacity

The factory at Nacharam had massive machinery with a capacity to produce 6,000 tonnes per month in the combined State when it functioned as Andhra Pradesh Foods. But it was brought down to 2,500 tonnes per month after AP government stopped sourcing the packets from it.

Pending clearance of outstanding dues when the inter-State issues were settled, an official said the Telangana government offered to maintain supplies to Andhra Pradesh against advance remittances on a monthly basis but there was no response from that State.

Children’s welfare

The Telangana government made the offer because children should not suffer on account of conflict between governments, he explained.

Telangana Foods is door delivering about 10 lakh packets within Telangana to 9.6 lakh children below three years this year as a part of Integrated Child Development Scheme (ICDS).

Some 15 lakh children in AP had benefited from the programme earlier.