Punjab Delegation Urges Union Finance Minister to Resolve RDF and MDF Issues
Seeks Immediate Release of ₹7000 Crore in Payments
Chandigarh, December 24:
A Punjab delegation, including Finance Minister Harpal Singh Cheema, Food and Civil Supplies Minister Lal Chand Kataruchak, Member of Parliament Vikramjit Singh Sahney, and Chief Secretary KAP Sinha, met with Union Finance Minister Nirmala Sitharaman in New Delhi today to address critical issues concerning the Rural Development Fund (RDF) and Market Development Fund (MDF). The delegation stressed the urgent need for the release of approximately ₹7000 crore in outstanding RDF and MDF payments, which are vital for maintaining Punjab’s extensive agricultural marketing infrastructure.
Finance Minister Cheema explained that the meeting involved constructive discussions, with the delegation highlighting the specific challenges Punjab faces due to the delayed payments. State government officials accompanied the delegation to emphasize the crucial role these funds play in the development of the Mandi Board, mandis (markets), connecting roads, and other agricultural marketing infrastructure.
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Cheema clarified that Punjab’s RDF and MDF situation, as a Decentralized Procurement (DCP) state, differs significantly from non-DCP states. He explained that Punjab’s mandi infrastructure, developed over decades, has greatly improved procurement processes.
“We have to charge a higher RDF/MDF because of this vast and time-tested infrastructure that no other state possesses,” Cheema stated. “It is due to the RDF and MDF that we have been able to develop a vast network of roads connecting the remotest of our villages to the mandis. These roads now demand maintenance and recarpeting, which will not be possible without the required RDF/MDF funds.”
Cheema emphasized the urgency of resolving the RDF and MDF issue, stating that further delays would severely hinder the state’s ability to maintain its infrastructure and could lead to procurement problems, which both the Punjab and Union governments want to avoid. He expressed optimism that a decision would be reached soon and that the Union Government would release the much-needed funds to support the continued development and maintenance of Punjab’s agricultural infrastructure.
