CAG picks holes in MDM scheme

Expressbuzz, Feb 19, 2009

BHUBANESWAR: Supply of eggs to schoolchildren under the mid-day meal (MDM) scheme has failed to fulfil its objective of providing nutritional value to the beneficiaries.

In its latest report, the CAG found that in 16 districts, out of the total provision of Rs 65.6 crore made for the supply of eggs during 2005-08, only Rs 20.03 crore was spent. The rest remained unspent with the district social welfare officers (DSWOs).

In eight schools visited by audit during the mid-day meal hour, it was seen that children were taking only cooked rice as adequate dal was not made available.

The unrealistic fixation of procurement price of eggs affected supply of eggs to schools. Under the scheme, cooking cost per student per school day was fixed at Rs 1.58 in July 2005 for meeting expenses on dal, vegetables, oil, condiments, fuel and supervision charges. It was raised to Rs 1.64 in October 2005 and Rs 2.16 in September 2006.

One egg was added to weekly menu in October 2005 by allocating 35 paise per day/beneficiary for procurement of one egg at Rs 2.

This was enhanced to two eggs from November 2006 with allocation of 76 paise per day/beneficiary. The cooking cost was raised by only 56 paise per student.

However, as the suppliers in many places were not willing to supply eggs at the above cost, the price was revised to Rs 2.28 per egg. To accommodate the cost of egg within the cooking cost, allocation of other items like vegetables, condiments and dal were curtailed by 10 to 5 0 percent per beneficiary.

The CAG observed that the State Government did not consider providing any financial input to keep allocations against other essential items intact.

In Kalahandi district, the suppliers did not come forward even after increase in the cost of egg to Rs 2.28 due to non-availability of required quantity in the district and cost hike.

Consequently, the State Government ordered in March 2008 to utilise the unspent balance of egg component by supplying soya chunk to students to overcome the nutritional deficiencies.

The CAG found several other irregularities in the implementation of MDM scheme.

In 19 blocks of 10 districts checked by the auditors, out of Rs 237.6 crore drawn during 2003-08, Rs 49.18 crore remained unspent. There was also unrealistic provision for transportation of dal.