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MoD cap on annual turnover of military canteens will hit sales

CHANDIGARH: In a move to stop misuse of subsidized items in the military Canteens, the ministry of defence (MoD) has put a cap on the Annual Turnover of all such units.

The new norms issued by the quartermaster general branch of the defence ministry on June 30 would have huge impact on the purchases at canteen stores department (CSD) units across the country as it would reduce their Annual turnover by around 30 to 40%. For instance, if the annual limit of a canteen having dependency of around 6,500 personnel was around Rs 18 crore, it would now be able to sell only Rs 12 crore worth goods.

As per the circular, signed by deputy director general (canteen services) Brigadier M V Suchindra Kumar, the new rule will come into force on August 1. The canteens have also been directed to place their new orders after taking into consideration the fresh demand and consumption pattern. According to the circular, personnel selling the CSD goods to unauthorized people will be debarred. The MoD has also decided to install biometric system in canteens by January 2018 to prevent unauthorized people’s entry.

However, managers at the canteens fear that with the curbs on turnovers, they would not be able to run the units for more than 15 days a month. “New rules have reduced our turnover but the purchase limit of the personnel remains the same. How can we run the canteen without goods as most of the items would run out early? There are chances of people complaining about non-availability of goods,” said manager of a Chandigarhbased canteen, who doesn’t want to be identified.

The MoD has justified its action, citing the Comptroller and Auditor General’s report, which had recommended streamlining of canteens to prevent unauthorised use of CSD items. At present, the monthly purchase limit of a jawan, a junior commissioned officer and a commissioned officer has been fixed at Rs 5,500, Rs 8,000 and Rs 11,000 respectively. However, no limit was fixed for the annual turnover of the canteens.

Source : timesofindia

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MoD cap on annual turnover of military canteens will hit sales


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