Haryana: Loss-making CONFED to shut

Set up in 1966 under the Punjab Cooperative Societies Act, 1961, the main objective of CONFED was to coordinate and facilitate working of consumer stores in different areas. The PSE was also involved with procurement of foodgrains, distribution of ration under Public Distribution System and making purchases for the dal-roti scheme in the state.
Last year, procurement of foodgrains by CONFED was stopped.

According to the white paper that the BJP government issued soon after it came to power in Haryana, the turnover of the Federation was Rs 762 crore in 2004-05, which increased to Rs 1,565 crore in 2013-14. Its net profit was Rs 5 crore in 2004-05, which has gradually turned into a net loss of Rs 59 crore in 2013-14.

In the year 2014-15, the losses of CONFED rose to Rs 266 crore due to rotting of wheat that was procured and then kept in the open. A total of 178 employees were chargesheeted for this, of which most have retired.

The fate of the employees, meanwhile, hangs in balance, with no decision yet where they will be adjusted.

At present, there are 105 employees at CONFED of which 52 are Class 4 employees.

Apart from them, 65 employees are working on contract. Most of the senior positions are now being held by officers from the Food and Supplies Department, Haryana.

Haryana Minister of State Food and Supplies Karan Dev Kamboj said, “The government has decided to close down CONFED and the process should be completed within the next three months. It is running in heavy losses. The Federation is at present only involved in transportation of foodgrains under PDS. The interest being paid on the loan taken from SBI is high. We have approved Rs 125 crore in order to clear the liability. The employees will be adjusted in other departments.”

An official at CONFED said by 2018, all regular employees apart from Class 4 employees of the Federation, would retire. The retirement benefits of the employees who were chargesheeted were stopped by CONFED. Around 100 of them have moved the court and the cases are going on. There are several issues that would require to be sorted out, said the official.

Criticising the decision of the government, former Chief Minister Bhupinder Singh Hooda said, “It is due to mismanagement by the government that the Federation is on the verge of closure. Instead of shutting it down, the BJP government should work on ways to revive the federation.”