Govt to help N-E states in raising loans: Pranab

Jun 6,  9:19 AM | Newsonair.com

The Government has expressed it’s commitment to support development of the North Eastern states and said it would help the states in raising loans from market.

Addressing a meeting of the Chief Ministers of North Eastern states in New Delhi yesterday the Finance Minister Pranab Mukherjee said if any State faced a problem on account of an undersubscribed market loan, the Centre would be ready to raise the loan within the permitted borrowing ceiling, and pass it on to the concerned state .

Mr Mukherjee also promised that the Finance Ministry would soon issue notifications to provide tax relief to industry in the region.

He further said that the Centre is aware of the special issues of the region, including a low base to mobilise resources and a geographical terrain that created challenges for communication and infrastructure development.

The Finance Minister appreciated the better fiscal management by most of the North Eastern States, as a result of which most States did not have to resort to overdrafts.

He also said that States Specific Grants recommended by the 13th Finance Commission would be released to ensure that the purposes of the grants were fulfilled without interruption.