SPV headed by Addl CS to run Amma Canteens

Chennai

According to a government order issued by the Municipal Administration and Water Supply Department, they would now be run by Amma Unavagam Foundation, which would be headed by the Additional Chief Secretary of the Department while a District Revenue Officer would be the executive officer.

The not-for-profit foundation, created as a special purpose vehicle under the Companies Act, 2013. would accept contributions from private organisations under Corporate Social Responsibility fund. The fund requirement would be met by the State government.

“Even though Amma Canteens will be maintained by the Amma Unavagam Foundation, the field-level coordination will be taken care of by the Greater Chennai Corporation officials and workers,” said an official.

Incurring an annual loss of Rs 100 crore the Amma Canteens, which serve idly for Re 1 and variety rice for Rs 5, became a huge burden on the civic body. As per records, the Corporation has incurred a loss of around Rs 500 crore since the scheme was launched in 2013-2014 financial year. The foundation was created to operate it as a self-sustaining social security model. These low-cost eateries suffering loss was not unexpected considering the price at which they sell the food. However, what is surprisingly is the drastic fall in income despite the near-doubling of the number of canteens to 407 from 207. In 2014-2015, 207 canteens made an income of Rs 40.52 crore, whereas the civic body only managed to earn Rs 24.87 crore in 2018-2019 from 407 canteens. The biggest loss of Rs 127.06 crore was recorded in 2016-2017, show records.