K’taka CM meets with central ministers; asks for an interest-free loan, waives conditions for discoms

Karnataka Chief Minister Basavaraj Bommai on Monday demanded an interest-free loan, more funds for building COVID-19 health infrastructure and lifting conditions for discoms to qualify for bank loans in the state. from South.

Bommai, who is in Delhi for a two-day visit, presented the demands during a meeting with four central ministers. He called Finance Minister Nirmala Sitharaman, Health Minister Mansukh Mandaviya, Railways Minister Ashwini Vaishnaw and Energy Minister RK Singh.

During his meeting with the Finance Minister, the Chief Minister of Karnataka discussed some of the key proposals announced in the Union Budget 2022-23.

Sitharaman had offered a 50-year interest-free loan of Rs 1 lakh crore to states to enable them to spend capital investments, especially in infrastructure, under PM Gati Shakti’s master plan in 2022-2023. She had also proposed allowing states to run a budget deficit of 4% of gross state domestic product (GSDP) in 2022-23, of which 0.5% will be related to power sector reforms.

“…I applied for an interest free loan of Rs 1 lakh crore from the states under the capital grant. About Rs 3,800 crore to Rs 4,000 crore will come to the state,’ Bommai told reporters after the meeting.

He said he also discussed power sector issues with Sitharaman, and asked him to “renounce a 0.5% budget deficit on 4% of the GSDP which is linked to power sector reforms. electricity”, for which the conditions have already been communicated to the States in 2021-22.

Addressing the issue with Energy Minister RK Singh in a separate meeting, the CM informed him that the conditions imposed on discoms are too many for the first year and must be relaxed so that companies can obtain bank loans.

“I asked him to waive certain conditions that will allow discoms to benefit from bank loans,” he added.

In a meeting with Mandaviya, Bommai discussed the COVID-19 situation and asked for a higher allocation of the special funds earmarked for health infrastructure development to fight the pandemic. He said the Minister of Health had accepted this request.

The Chief Minister also said that the Minister of Railways had agreed to his request to allocate more rakes for transporting coal in the state.

He added that he planned to meet senior party brass including BJP National Chairman JP Nadda on Tuesday to discuss policy developments.


(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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