“Absorb a portion of Kudankulam package cost”

Jayalalithaa demands special treatment for State

June 05, 2012 03:12 am | Updated 03:12 am IST - CHENNAI:

Chief Minister Jayalalithaa on Monday demanded the Union Government accord special treatment to Tamil Nadu by absorbing a portion of the cost of the Rs.500-crore special package meant for meeting basic needs of the people residing around the Kundankulam Nuclear Power Plant (KKNPP) site.

In her speech at the Union Planning Commission in New Delhi, she said that her government had made enormous efforts to end the anti-nuclear plant agitation. Its efforts would benefit the Centre's long-term policy on nuclear energy. Of the total package, Rs.300 crore would be required for providing housing to 10,000 persons living around the KKNNP site. The remaining Rs.200 crore would be spent by KKNPP authorities under their Corporate Social Responsibility schemes for meeting other basic needs such as fish landing centre, cold storage facilities and motor boat repair workshop.

It was proposed to spend Rs.300 crore over three years — 2012-2013, allocation of Rs.150 crore; 2013-2014 (Rs.90 crore) and 2014-2015 (Rs.60 crore).

Referring to her earlier appeal to Prime Minister Manmohan Singh for a special package, she recalled that Dr. Singh had, in his response, stated that the Centre would take care of the requirements of the people.

Addressing Deputy Chairman of the Planning Commission Montek Singh Ahluwalia and other members she said: “It will not be proper for the Government of India to meet their commitment of Rs.300 crore towards this by adjusting it into the State's already entitled resources. The Government of India, therefore, should honour its commitments by providing for Rs.300 crore outside the Plan exercise.”

On the supply-demand mismatch on the State's power front, she explained that it was in the range of 3,000 megawatt to 4,000 MW, representing about a third of the demand, and was crippling the industry. This had prompted her to request allocation of the entire 1,000 MW from the Central Pool generated from the first unit of the KKNPP.

Calling for substantial investment in the power sector and Central assistance, she suggested that a concessional funding window be created for large power generation plants to be set up by State power utilities. She underlined the need for expeditious clearance of projects such as the Kundah hydro project and finalisation of fuel supply agreements and coal linkages.

The B.K. Chaturvedi Committee would, she hoped, devise a pragmatic revival package for power utilities that reschedules bank loans and defers payments to the Power Transmission Corporation and NTPC. She wanted the Planning Commission to review the guidelines of the National Solar Mission to match State allocation for potential projects and promote equitable treatment of States.

Expressing her optimism that the Centre would “liberally support” projects proposed under the Vision 2023 through viability gap funding, she said that considering the scrutiny that the projects would face by the proposed Tamil Nadu Infrastructure Development Board, there might not be any need for a parallel evaluation by the Centre for viability gap funding. Referring to the government's request to the Centre for funding two river inter-linking projects, Ms. Jayalalithaa said that she was disappointed at the lack of response as alternative access to funds under the Accelerated Irrigation Benefit Programme (AIBP) had also been denied to Tamil Nadu. Again, despite the Union Planning Commission's recommendation for financial assistance to the State under the Flood Management Programme, no funds were released during 2011-2012. She urged the Planning Commission to secure assistance of Rs.9,090 crore under the AIBP for linking of intra-State rivers and flood management.

Urging the Planning Commission to recommend at least Rs.650 crore under the National Agriculture Development Programme (NADP) to the State Plan, she said that the present pattern of financing NADP, by linking it to incremental Plan allocation for the Primary Sector, was unfair to States such as Tamil Nadu, having very limited potential for major irrigation projects.

Adverting to the Planning Commission's provision of Rs.160 crore as 30 per cent one-time Additional Central Assistance last year, Ms. Jayalalithaa said the State was expecting at least Rs.250 crore this year as 30 per cent contribution for the schemes of sewage management and protection of waterbodies in Chennai (Rs.150 crore) and augmentation of drinking water supply by constructing new tanks and restoring existing drinking water sources (Rs.100 crore).

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