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Rangasamy meets Shinde, seeks nod to raise loans

UT Chief Minister also sought release of pending `70 cr for Thane relief fund

Published: 16th December 2012 08:30 AM  |   Last Updated: 16th December 2012 08:30 AM   |  A+A-

Rangasamy

Chief minister N Rangasamy has urged the Union Home Minister Sushil Kumar Shinde to permit the UT government to raise loans as per the allocation approved by Planning Commission. Calling on Shinde in New Delhi on Saturday, he presented a memorandum to the minister stressing on the requirement of loans.

This loan amount is required for executing development works including infrastructural projects planned in the budget, Rangasamy told Express over phone from New Delhi. Besides, he sought release of Rs 70 crores for Thane cyclone relief, which was still pending “ I have requested the home minister to give permission for raising the negotiated loans  and borrowing from market,” he said. So far the approval for raising the amount has not been given, despite being in the eighth month of the financial year. Unless the funds are raised, the plans announced in the budget cannot be executed.

Once approved, the UT government would move to agencies like NABARD, HUDCO for availing of negotiated loans. Further, RBI can conduct auction of government bonds for raising loans from the market.

The gross budget estimate for 2012-13 is Rs 5, 540 crores, which includes a plan outlay of Rs  3, 000 crores, non-plan provision of Rs 2, 450 crores and centrally-sponsored scheme of Rs 90 crores.

The loan component being Rs 916.28 crores, which includes Rs 500 crores from market borrowings and Rs 319.28 crores from negotiated loans. Already the pending loans have risen to more than 4, 500 crores, which is an impediment for getting approval from the Union government to raise further loans.



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