Chennai Corporation to launch SPV to run low-cost Amma Canteens

According to a Chennai Corporation source, the approval would be obtained within a week from the State government. “The proposal to set up the special purpose vehicle was sent to the government earlier this month. Once the state finance department approves the funds sanctioned by the government, the SPV will start functioning from generating funds from volunteers as well as from corporate social responsibility funds,” the source said. It may be noted that Amma Canteens in the city are facing a huge loss of close to Rs 100 crore every year as the canteens serve idly for Re 1 and a variety rice for Rs 5. As per the records, the Chennai Corporation has incurred a loss of around Rs 483.75 crore since the scheme was launched in the financial year 2013-14. Surprisingly, the income from the canteens has been decreasing over the years despite the number of canteens being increased to 407 from 207.

In 2014-2015, as many as 207 canteens made an income of Rs 40.52 crore, whereas, the civic body only managed to earn Rs 24.87 crore in 2018-19 with 407 canteens. During 2016-17, the civic body had accrued a loss of Rs 127.06 crore, which is the highest loss over the years.