Loss-hit Amma Canteens mull menu revamp

The committee will be headed by the Deputy Commissioner (Health), and has seven members including the City Health Officer, who is the vice chairman of the committee. A circular in this regard was issued on June 25.

According to a Chennai Corporation official, the civic body is spending around Rs 140 crore per year to run 407 Amma Canteens, but manages to earn only Rs 30 crore in return thus accruing an annual loss of Rs 110 crore.

“The committee will study the performances of all the Amma Canteens and discuss the measures that should be taken to balance the expenditure and revenue. The committee may also propose to change the menu or add new options to attract more patronage,” he said.

The committee is likely to submit its final report before July 15, which would then be sent to the State Government for approval. Except rice, which is supplied by the Civil Supplies Department at Re 1 per kg, all the other items are being procured at market rate, with the expenses being met from the civic body’scoffers.

The circular, a copy of which is available with DT Next, states that the annual expenditure outruns the income by around Rs 110 to Rs 140 crore. “The team is ordered to propose appropriate measures to increase the revenue from Amma Canteens and make it a financially sustainable model,” reads the circular.