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Covid-19 crisis: TN asks Centre for Rs 2,321 crore

Tamil Nadu Chief Minister K Palaniswami on Monday requested Prime Minister Narendra Modi for ad-hoc grant of Rs 1,000 crore from National Disaster Relief Fund (NDRF) and Custom Milled Rice (CMR) subsidy of Rs 1,321 crore.

Covid-19 crisis: TN asks Centre for Rs 2,321 crore


Modi held a video conference with chief ministers and those who were not able to speak at the earlier meetings spoke on Monday and the others were requested to fax their views.

In his fax to Modi, text of which was released to the media here, Palaniswami requested for an ad-hoc grant of Rs 1,000 crore from NDRF for purchase of medical and protective material.

"The Chief Minister's Public Relief Fund may be made eligible to receive Corporate Social Responsibility (CSR) contribution under Schedule-III of the Companies Act, 2013," he said.

Requesting additional allocation of rice free of cost, Palaniswami also asked Modi to release Rs 1,321 crore as CMR subsidy to facilitate paddy procurement.

Tamil Nadu Chief Minister also asked Modi for a relief package for the power sector and extension of support to micro, small and medium enterprises (MSME) units for payment of salaries to their employees, payment of PF and ESI dues on their behalf and waiver of interest on term loans and working capital loans for a period of six months. Payment of GST Advance Tax and income tax may be deferred for six months to help the MSMEs, Palaniswami said.

Detailing various welfare measures taken by his government for the benefit of the poor, Palaniswami said 42 companies have started manufacturing of Covid-19 related medical equipment and drugs after a special package was announced.

"In order to double farmers' income, I request you to provide transport subsidy to the Farmer Producers Organisations, so as to take the farmers produce directly to the consumers," Palaniswami said.

"The fiscal deficit limits of 3 per cent of GSDP (gross state domestic product) may be increased to 4.5 per cent for 2019-20 and 2020-21. Additional borrowing of 33 per cent above the permitted level for fiscal year 2019-20, may be allowed for 2020-21. The GST compensation for December-January may be released now," he said.

He also asked for the release of 50 per cent of the 2020-21 Finance Commission grants to the Urban and Rural Local bodies.

"The Ways and Means limit of the States which was increased by 30 per cent by the RBI (Reserve Bank of India) should be doubled and the advances availed in the fiscal year 2020-21 should be made interest-free," Palaniswami said.

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