Karnataka has sought a special grant of ₹5,030 crore under the Centrally funded projects for comprehensive development of Kalyana Karnataka region even as it also requested for extension of the compensation period for Goods and Services Tax (GST) till 2024–25.
The request to Union Finance Minister Nirmala Sitharaman came from Chief Minister Basavaraj Bommai in New Delhi on Monday during the latter's meeting with the MPs from Karnataka that he had convened to discuss State-related issues.
Backward districts
Recently, during the South Zone Development Council meeting at Tirupati, Andhra Pradesh, the Centre was requested to provide special funds for the development of backward districts. A similar request was made by Mr. Bommai on Monday since some of the most backward districts are in Kalyana Karnataka. Despite providing reservation in education and employment under article 371J, the region still remains backward and these districts are at the bottom of the poverty index drawn by Niti Ayog, a note from CM's office said.
The Chief Minister also requested the Union Finance Minister to extend the compensation period for States under GST, which is ending in 2022, till 2024–2025. He said that the GST compensation comes to an end in March 2022 and that due to COVID-19 pandemic the State governments have been struggling to raise resources. He also said that the Centre should continue for the next three years with the loan scheme for the State's that has been implemented in the past two years. He suggested that the States would be able to repay loan from the money collected from cess, the note added.
Conditions on Escoms
In a separate meeting with Union Energy Minister R.K. Singh, the State has also appealed to the Centre to waive certain conditions imposed on electricity supply companies (Escoms) to raise loans. He also pointed out that Karnataka was among the States providing the highest power subsidy with an annual bill of about ₹15,000 crore, and that the State requires some time to clear the previous years’ subsidy bills. Mr. Bommai also met the Union Railway Minister Ashwini Vaishnav, seeking railway rakes to transport coal to thermal power plants in the State. Mr. Bommai said the Minister agreed to issue directions to officials in Railway Board to address the problem, and that Chief Secretary P. Ravi Kumar would also be speaking to the board chairman. Regarding a question on delay in railway and road projects in the State, Mr. Bommai refuted the allegation and said that the Government had already agreed to provide GST waiver in the STRR project and several railway projects had been bogged down by land acquisition issues.
Health infrastructure
The Chief Minister during his meeting with Union Health Minister Mansukh Mandviya, appealed for special capital grants to create and develop health infrastructure.
Mr. Bommai also told reporters that the meeting with MPs in which Union Ministers from Karnataka, including the Finance Minister, participated discussed irrigation, railway, and urban development issues pertaining to the State.
