Question : WRITING OFF LOAN



(a) whether the Government of Andhra Pradesh has requested to the Union Government to write-off Rs.3491 crores on account of expenditure incurred on anti-extremist operations; and

(b) if so, the present status of the request?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)

(a) Yes, Sir.

(b) The Eleventh Finance Commission, as per its term of reference was required to make an assessment of the debt position of all States as on 31.3.99 and suggest such corrective measures as are deemed necessary, keeping in view the long term sustainability for both the Centre and the States. The Eleventh Finance Commission has since submitted its Report including the measures for debt relief. The Government of India has accepted the recommendation of the EFC with regard to debt relief of the States as contained in the main report for 2000-2005.

Government of India also reimburses 50% of expenditure on identified security related items including gratuitous relief to the victims of extremist violence, raising of IR Battalions, training of Police personnel and for arms and ammunitions etc. An amount of Rs.30.46 crore was reimbursed to the State during 1999-2000 under the SRE scheme.