KEY STORY
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Karnataka Chief Minister Basavaraj Bommai on Monday demanded interest-free loan, more funds for building COVID-19 health infrastructure and waiver of conditions for discoms to avail bank loans in the southern state.
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Bommai, who is in Delhi on a two-day visit, put forward the demands at a meeting with four central ministers.
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He called on Finance Minister Nirmala Sitharaman, Health Minister Mansukh Mandaviya, Railway Minister Ashwini Vaishnaw and Power Minister R K Singh.
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In his meeting with the finance minister, the Karnataka chief minister discussed some of the key proposals announced in the Union budget 2022-23.
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Sitharaman had proposed a 50-year, interest-free loan of Rs 1 lakh crore to states to enable them to spend on capital investments, especially on infrastructure, under the PM Gati Shakti Master Plan during 2022-23.
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She had also proposed allowing states a fiscal deficit of 4 per cent of Gross State Domestic Produce (GSDP) in 2022-23, of which 0.5 per cent will be tied to power sector reforms.
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“…I have requested for interest-free loan of Rs 1 lakh crore to 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.
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He said he also discussed the power sector issues with Sitharaman, and requested her to “waive off a fiscal deficit of 0.5 per cent out of 4 per cent of GSDP that is tied to power sector reforms”, for which the conditions have already been communicated to the states in 2021-22.
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Raising the issue with Power Minister R K Singh in a separate meeting, the CM informed him that the conditions imposed on discoms are too many for the first year and they need to be relaxed so that the companies can get bank loans.
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“I requested him to waive off some conditions which will allow the discoms to avail bank loans,” he added.
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In a meeting with Mandaviya, Bommai discussed about the COVID-19 situation and requested for higher allocation from the special funds set aside for development of health infrastructure for tackling the pandemic.
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He said the health minister agreed to this demand.
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The chief minister also said that the railway minister agreed to his request to allot more rakes for movement of coal in the state.
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He added that he plans to meet the party top brass, including BJP national president J P Nadda, on Tuesday to discuss political developments.
