Press "Enter" to skip to content

TN govt requests Centre for Rs.9000 crore to fight COVID-19, boost economy

Chief Minister Edappadi Palaniswami has further asked that the GST component for the month of April to June, 2020 be released early.

The Tamil Nadu government has requested the Centre to provide a relief package of Rs.3000 crore to the state, to aid its efforts to battle the COVID-19 pandemic. In addition to this the state government has requested a special grant of Rs.9000 crore to combat both the virus and its effects on the economy.

Chief Minister Edappadi Palaniswami has further asked that the Goods and Services tax component for the month of April to June, 2020 be released early.  In a 5 page letter to Prime Minister Narendra Modi, Palaniswami highlighted the efforts taken by the government in connection to the pandemic and stated that additional funds were required  at this point as the state’s own treasury was depleting.

“As we have already fully exhausted the State Disaster Response and Mitigation Fund, I also request an ad-hoc grant of 1,000 crore rupees from NDRF immediately to fight the pandemic. Releasing a pending CMR subsidy of 1,321 crore rupees at this time, will facilitate paddy procurement,” the Chief Minister stated.  “I request you to announce a relief package to ease the immediate burden on the power sector, which will help distressed Discoms. I request you to instruct the concerned Ministry to remove the requirements for the power sector reform and also to allow greater latitude to States in implementing the reform agenda,” he added.

The state government, while thanking the centre for its guidance, also requested certain alterations to suit the state’s needs.

“Your announcement of extending free supply of rice and whole Chana Dal to the priority households is truly a welcome measure. I would like to inform you that the whole Chana Dal is not part of the staple diet of the people of Tamil Nadu. Based on my earlier letter to you in this regard, I request you to release 55,637 MT of Toor Dal to the state for distribution till November,” the Chief Minister stated.

The state has also requested central funding for Polymerase chain reaction (PCR) tests and high end ventilators.

“I would like to highlight that Tamil Nadu is continuing its strategy of aggressive, targeted testing and is currently conducting the maximum number of PCR tests in the country. Tamil Nadu presently has 130 labs for COVID testing with 61 Government and 69 private labs, with an average testing capacity of 65,000 tests per day. These tests cost nearly 5 crore rupees a day. I request the Government of India to fund 50% of the cost of the PCR tests from the PM – CARES fund,” stated the letter.

The Tamil Nadu government has also requested for early approval of externally aided projects, Rs.1000 crore as refinance facility from RBI special packages and a special  loan product for Covid-19 for Self Help Groups. 

 

Source: The News Minute