THIRUVANANTHAPURAM: Aiming to raise an additional Rs 10,500 crore towards rebuilding, the state would urge the Centre to hike its borrowing limit, said Chief Minister Pinarayi Vijayan here on Tuesday. After devastating floods, efforts are on to build a new Kerala, he said.
The State Cabinet on Tuesday decided to formulate a comprehensive project aimed at relief, rehabilitation and reconstruction of the state, and submit the same to the Centre. He told reporters the state would have to raise additional external loans from the open market to support the huge reconstruction efforts. The state’s borrowing limit is fixed at 3 per cent of the Gross State Domestic Product.
The state would request the Centre to raise this limit to 4.5 per cent to help it raise an additional `10,500 crore from the market. Along with borrowing from open market, the state would also approach National Bank for Agriculture and Rural Development (NABARD), an apex development financial institution, for special central projects in infrastructure development, agriculture, water resource management and social development.
The government would approach the Centre to implement special projects, including Mahatma Gandhi National Rural Employments Guarantee Scheme (MGNREGS).A special package of Rs 2,600 crore would be needed under MGNREGS this year, the Chief Minister said.
Special Assembly session on Aug 30
Pinarayi Vijayan said a special session of the state Assembly would be convened on August 30 to discuss on relief, reconstruction and rehabilitation. On Forest Minister K Raju’s controversial German visit, the CM said: “This is not the right time to discuss the issue.’’
State for 10 pc cess on GST
T’Puram: As part of additional resource mobilisation, Kerala will approach the GST Council seeking clearance to impose 10 pc cess on state GST. The decision was taken at the Cabinet meet on Tuesday. The state will launch a special lottery also.