Chief Minister seeks special financial package for State

Chief Minister Jayalalithaa. Photo: DIPR  

Chief Minister Jayalalithaa has sought a special financial package from the Prime Minister for Tamil Nadu to help the State overcome its present financial crisis.

In a 18-page memorandum submitted to the Prime Minister at the Raj Bhavan on Sunday evening, she said the State's revenue deficit was over Rs 3,000 crore and debt burden was over Rs 1 lakh crore, which was severely hampering the State's development works.

The Centre should provide additional financial support under specific programmes like Backward Regions Grant (BRG) and infrastructural development schemes, similar to special package extended to the West Bengal government recently.

Requests pending

The Centre has kept pending the State's request for sanction of Debt Relief pertaining to reduction of interest rates on loans sanctioned from the National Small Savings Fund (NSSF) and write-off of outstanding loans due to various Union Ministries and departments.

The State was entitled to Interest Relief on NSSF loans to an extent of Rs.228 crore and Debt waiver relief of Rs.212 crore.

This must be implemented with effect from April 1, 2010 as recommended by the 13 Finance Commission, Ms. Jayalalithaa said.

In the forthcoming talks with Sri Lanka, proposed to be held in January, 2012, the Centre should strongly take up the issue of attacks against Indian fishermen.

“Protect traditional rights”

All efforts must be taken to protect the traditional fishing rights of Tamil Nadu fishermen in the Palk Bay area and to ensure their safety and security, she demanded.

Ms. Jayalalithaa also reminded the Prime Minister of her demand for a Special Package for conversion of bottom trawlers into deep sea tuna Long Liners suitable for deep sea fishing to reduce the trawling fishing pressure in the disputed waters of the Palk Bay area and the request for an assistance of Rs.10 crore every year for dredging of fishing harbours and bar mouths.

The Chief Minister sought a special package for the financial revival of power utilities with the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) on the brink of financial collapse with an accumulated loss of over Rs.40,000 crore and an unmanageable debt amounting to more than Rs.50,000 crore.

Allocation from Central pool

In the package, Ms. Jayalalithaa asked for a grant-in-aid of Rs 455.16 crore for grid connected renewable energy; additional allocation of 1000 MW from the Central pool; special financial assistance under Clean Energy Fund for wind energy development; reduction of transmission and distribution losses and measures for supply-side management; additional allocation of power from the capacity addition under joint sectors and long term coal linkage for new projects.

This article is closed for comments.
Please Email the Editor

Printable version | Oct 27, 2020 6:46:26 PM |

Next Story