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Sorry state of Amma canteens in Chennai!!

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Posted on : 28/May/2022 9:31:25 AM



 
 
 
Amma canteens have been doing superb service of providing foods at cheap rates for the public. It is now brought out that these Amma Canteens that had satisfied the hunger of many people are finding it difficult to survive. These Amma canteens depend on the funds provided by the government is a known fact.

It is really shocking to mention that Amma canteens in Chennai have been experiencing heavy loss of more than Es 100 crores every year. The Chennai Corporation requires Rs 110 crores to successfully run these Amma canteens now. This was explained by a source from GCC.

For the sake of financial assistance, a request was submitted by the concerned officials to the State Finance Department. Inspite of heavy loss, Amma canteens have been providing quality foods only. When compared to the hotels, the cost of foods at Amma canteens is still low.

Amma Canteen Foundation, a special purpose vehicle that was proposed to be constituted during the AIADMK governments rule is still pending only. Despite a GO issued in January 2021 the foundation hasnt yet formed. It is learnt that the foundation would collect donations and CSR funds from the corporate to run the Amma canteens in TN. In 2019, a survey was conducted by GCC about the Amma canteens and it was found that 85% of the customers belong to economically backward families. 

Some sources belonging to GCC have explained that the effective running of Amma canteens from the money got through donations and CSR funds etc might not be sufficient. When compared to the money generated the expenses would be much higher.

Ever since the scheme of Amma canteens was introduced in 2013-14 financial year. GCC has incurred a loss of more than Rs 700 crores. Despite the increase in the number of Amma canteens now the income from these canteens has been decreasing.
 
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