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Coronavirus | Rajasthan CM Ashok Gehlot writes to PM Modi; seeks ₹1 lakh crore grant to States

Rajasthan Chief Minister Ashok Gehlot

Rajasthan Chief Minister Ashok Gehlot  

The Chief Minister of Rajasthan says the Centre should direct the Reserve Bank of India to provide the grant amount as an interest-free advance.

Chief Minister Ashok Gehlot wrote to Prime Minister Narendra Modi on Saturday, urging him to take measures such as granting of ₹1 lakh crore to States to tackle the coronavirus (COVID-19) pandemic and problems during the lockdown to stop the spread of the disease.

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The first instalment of the grant should be given to States based on per person population. Later, the grant amount can be given more to the States where the infection rate is high, and proportionally to the remaining States, the Chief Minister said in his letter to Mr. Modi.

Mr. Gehlot, while extending gratitude to the Prime Minister for announcing an economic package in the wake of the COVID-19 pandemic, said the Centre and States have to jointly fight this pandemic.

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He said the Centre should direct the Reserve Bank of India to provide ₹1 lakh crore to States as an interest-free advance.

This should be done for 11 months from April 1, the Chief Minister said in his letter.

He mentioned that economies of the States have been adversely affected due to the COVID-19 pandemic.

Noting the huge decline in tax and non-tax revenue, he said permission for additional two per cent credit limit should be given immediately from the Net Credit Limit which the States get.

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The Chief Minister said States expect that the Centre should grant moratorium of at least three months in the payment of instalments due to the RBI and other financial institutions.

Mr. Gehlot said that people are facing a crisis due to the lockdown.

To save the people from starvation, the Rajasthan government is making all possible efforts to maintain the supply chain of essential items along with a direction to provide cash to the weak and deprived sections of the society, he said.

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The Chief Minister said the State government by increasing expenses in the health sector has taken measures with full capacity to stop the effect of this pandemic. Despite the efforts being made to fight with this disease, the State has its limits to raise new resources, he said.

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Printable version | May 29, 2020 8:30:26 PM | https://www.thehindu.com/news/national/other-states/coronavirus-rajasthan-cm-ashok-gehlot-writes-to-pm-modi-seeks-1-lakh-crore-grant-to-states/article31193857.ece

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