Puducherry CM meets PM Modi, seeks ₹2,000 crore more from Centre

Prime Minister Narendra Modi with Puducherry Chief Minister N. Rangasamy  in New Delhi on Tuesday.

Prime Minister Narendra Modi with Puducherry Chief Minister N. Rangasamy in New Delhi on Tuesday. | Photo Credit: -

Ahead of the commencement of the budget session of Puducherry Assembly on Wednesday, Chief Minister N. Rangasamy on Tuesday called on Prime Minister Narendra Modi in New Delhi and sought his intervention in sanctioning additional Central Assistance of ₹2,000 crore for the Union Territory.

Submitting a memorandum to the Prime Minister during his meeting, the Chief Minister sought the assistance before presenting the budget.

Mr. Rangasamy said after the introduction of Goods and Services Tax, the Union Territory’s revenue collection had come down drastically. The reason for reduction in tax collection was due to the fact that the economy in the region was not consumption based.

“If the Government of India decided not to extend GST compensation, we will be short of approximately ₹2,000 crore to reach at least the Revised Estimate (RE) figures of 2021- 2022 for the current year,” he said.

He added that the Central assistance set aside in the Union Budget for 2022-23 was ₹1,724, which was almost ₹150 crore less than previous years’ allocation. In 2021-22, the assistance was ₹1,874 crore with a total RE of ₹10, 414 crore, he added.

The Chief Minister brought to the knowledge of Prime Minister, the Union Territory’s committed expenditure towards payment of arrears after implementation of 7 th Pay Commission. Mr. Rangasamy also raised the issue of allocation of additional assistance when he called on Union Finance Minister Nirmala Sitharaman.


In his meeting with Union Minister for Health and Family Welfare Mansuk Mandaviya, the Chief Minister sought funds to upgrade Indira Gandhi Medical College and Research Institute to a Medical University and also for setting up a super specialty hospital.

He also sought permission to start a medical college at Karaikal in line with Centre’s policy to have a medical college in every district of the country.

The medical college attached to the Karaikal District Hospital could be set up. The health facilities available at the Community Health Centres, Primary Health Centres and Health Sub Centres could be utilised, he said.

Chief Minister N. Rangasamy also called on President Droupadi Murmu during his one-day visit to New Delhi. Chief Minister will be back on Tuesday night to attend the opening day of the Budget session of the Legislative Assembly, CM’s office said.

Mr. Rangasamy on Monday evening left for New Delhi to call on the Prime Minister. It was his first visit since the AINRC-BJP government assumed office last year. The visit assumed importance as his government awaits Central clearance for presenting the annual budget though the Puducherry Planning Board had sent to Ministry of Home Affairs the draft of the annual plan for ₹11,000 crore last month itself.

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Printable version | Aug 16, 2022 9:06:51 pm | https://www.thehindu.com/news/cities/puducherry/puducherry-cm-meets-pm-modi-seeks-2000-crore-more-from-centre/article65749755.ece