E-Paper
Centre’s Rs 450-crore interest-free loan comes as relief for cash-strapped Himachal
Prime Minister Narendra Modi wants to develop the trans Himalayan range with capital expenditure for which special assistance has been earmarked for Himachal Pradesh, Uttarakhand and the north eastern states.
The Centre’s Rs 450-crore interest-free loan to boost the economy has come as a breather for cash-strapped Himachal Pradesh.
Union minister of state for finance and corporate affairs Anurag Thakur played a key role in ensuring that his home state gets the maximum interest free loan. The Centre released Rs 205 crore of goods and services tax (GST) compensation for the state besides announcing the Rs 450-crore interest-free loan for 50 years.
BJP-ruled Himachal Pradesh is among the top two states in the country to get the special interest-free 50-year loan for capital expenditure.
Union finance minister Nirmala Sitharaman’s announcement of an economic booster has come as a relief to eight financially stressed hill states, including Himachal Pradesh, which have been given Rs 2,500 crore each at a time when quarterly compensation of the GST has been delayed.
Prime Minister Narendra Modi wants to develop the trans Himalayan range with capital expenditure for which special assistance has been earmarked for Himachal Pradesh, Uttarakhand and the north eastern states.
BOOST FOR INFRASTRUCTURE, JOBS
The interest-free loan is aimed at boosting infrastructure development besides generating job opportunities, self-employment options and strengthening local businesses.
The state’s debt has crossed Rs 54,000 crore and the state is managing its financial affairs by raising loans one after another for development works and other financial needs.
The state raised loans of Rs 5,067 crore between January 2019 and March 2020 and Rs 5,677 crore since April this year till July.
WILL ACCELERATE DEVELOPMENT: CM
“Never before has such an amount been allocated to Himachal Pradesh despite the revenue shortfall of the central government given the Covid-19 pandemic” said Anurag Thakur.
Chief Minister Jai Ram Thakur thanked Sitharaman and Anurag Thakur for releasing and said that the GST compensation amount and long-term loan to fund capital works would accelerate the pace of development in the state.
