Letter of credit system withdrawn from July 1

BHUBANESWAR: The State government has withdrawn the letter of credit system for public works divisions and irrigation projects from July 1. The system was continuing since 1968.  The letter of credit will be substituted by allotment for works expenditure to be issued by the controlling officers through Integrated Orissa Treasury Management System (IOTMS). Finance Minister Prafulla Chandra Ghadei said that there is no need to wait for inked-signed copy of the allotment and letter of credit for issue of cheques by the divisional officers, financial advisors and chief accounts officers (CAOs) of irrigation projects.  The drawal against various deposits would also be allowed against the balance available in the books of the division/irrigation projects for each kind of deposit work.  The Minister said this will enable instant allocation of funds online, improve the monitoring system for works expenditure and remove avoidable paper work.