Par panel pulls up FMC for not using allocated funds fully

A Parliamentary panel has pulled up the commodity market regulator FMC for its failure to fully utilise the funds allocated for regulating the market.

New Delhi: A Parliamentary panel has pulled
up the commodity market regulator FMC for its failure to fully
utilise the funds allocated for regulating the market.

"Though the Planning Commission has been allocating huge
funds every year to FMC for regulating future/forward trading
in the country, FMC has not been able to utilise even fifty
per cent of the allocated funds," the Standing Committee
report on Food, Consumer Affairs and Public Distribution said.
For 2008-09 fiscal, the budget estimate was Rs 20.70
crore, which was reduced to Rs 3.6 crore in the revised
estimates and the actual expenditure was only Rs 3.31 crore.
For 2007-08 fiscal too the situation was similar.

The Committee rejected the government`s plea that funds
could not be used due to non-passage of the Forward Contracts
(Regulation) Amendment (FCRA) bill.

The panel recommended the commodity market regulator FMC
(Forward Market Commission) should improve its performance
with the existing resources without waiting for the passage of
the FCRA bill.

It also suggested the government to re-introduce the bill
in Parliament in order to strengthen the regulatory framework
and confer autonomy on the regulator.

The FCRA bill was introduced in the Lok Sabha in 2008 to
convert the Ordinance into the Act. However, it got lapsed
due to dissolution of the 14th Lok Sabha, the report said.
On vacant posts at FMC, the panel said out of the total
sanctioned strength of 236, only 83 positions are filled.

"The government should take urgent necessary action to
fill up all the vacant posts of FMC without waiting for the
passage of the FCRA bill so that regulatory work does not
suffer for want of suitable candidate," it said.

-PTI

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