(a) whether the Finance Ministry has received any request from
the Government of Tamil Nadu for special financial package of
Rs. 2 lakh crores to meet the State Government`s debt relief,
bailout pack for Tamil Nadu Electricity Board (TNEB) and urban
infrastructure provision in the recent past;
(b) if so, the details thereof; and
(c) the decision taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) & (b) No request for special financial package of Rs. 2 Lakh crore
has been received from Government of Tamil Nadu. However, the State, had
requested, through separate references, to extend Special Assistance of
Rs.1,00,000 crore as grant to reduce the debt level of the State and a
special developmental financial package of Rs.25,000 crore partly as
grant and partly as a 20 year loan for specific developmental and heavy
infrastructure projects, including for urban development.
(c) Debt Consolidation amounting to Rs.5265.57 crore and Debt Waiver
amounting to Rs.1316.40 crore has been extended to the State in pursuant
to the recommendations of XIIth Finance Commission. Further, following
public debt and other liabilities relief measures have been extended to
the State of Tamil Nadu in accordance with the recommendations of
Thirteenth Finance Commission (FC-XIII), for its award period 2010-15;
(i) Central loan amounting to Rs.107.89 crore under Central Plan Schemes
(CPS)/Centrally Sponsored Schemes (CSS) advanced to Government of Tamil Nadu
by Ministries other than Ministry of Finance outstanding as on 31.3.2010 has
been written off during 2011-12.
(ii) FC XIII has recommended that interest rate on National Small Savings
Fund (NSSF) loans contracted by States till 2006-07 and outstanding till the
end of the year preceding the year in which Fiscal Reforms and Budget
Management Act (FRBMA) is amended /enacted by a State, be reset at an
interest rate of 9%. On amendment of FRBMA by the State in October 2011
the benefit of reset of interest on NSSF loans has been extended to the
State for the year 2011-12.
Request for additional funds from State is contextualized within the framework
for the Central Assistance that is provided to States on a regular basis. Funds
are made available to States through CPS/CSS, State Plan Schemes and Finance
Commissions awarded grants. Loans are also facilitated for State specific
projects through External Funding Agencies. State has been requested to
project its requirement of resources for specific areas of development
during the course of discussion of State`s Annual Plan for 2012-13. A
response on these lines has already been sent to the State Government
of Tamil Nadu in January 2012.