Centre agrees to release funds

Mission Kakatiya, Bhagiratha  

Hyderabad: Telangana State’s flagship developmental programmes – Mission Kakatiya and Mission Bhagiratha – got nod from the Union Government’s think-tank NITI Aayog. The TS government had requested the Centre to allocate nearly Rs 33,000 crore for the next four years for the two projects taken up in 2015.

It is estimated that Rs 15,000 crore for Mission Kakatiya to revive the water bodies and Rs 28,000 crore to implement water grid project which is envisaged to supply drinking water to all households by 2019. A senior official of Finance Department told The Hans India that in the recent pre-budget meeting conducted by Union Finance Minister Arun Jaitely,

the state officials were informed that the NITI (National Institution for Transforming India) Aayog accepted the request to allocate funds for the two missions. The Union Finance Ministry will take a decision on the quantum of funds to be allocated before the presentation of the Union Budget. Once the Finance Ministry gives its consent, funds will be released to Telangana State every year in the next four years.

Similarly, the government has intensified lobbying to get all funds that are due to the state as per the AP Reorganisation Act. Release of nearly Rs 30,000 crore for the backward district development programme under the special package, exemption of HMDA and Hyderabad water board from payment of income tax, raise in excise duty exemption as part of industrial incentive and restoration of Minimum Alternate Tax (MAT) Exemption from SEZ units which have been pending before the Centre are some of the issues taken up with the Centre.

Telangana Finance Minister E Rajendar said that the Centre provided Rs 700 crore funds under special package to AP last year but the Telangna got a raw deal. The Act also says that tax incentives will be given to promote industrialisation and economic growth in both the Telugu states. But no such incentives were given to Telangana in the last two Union budgets, he said.

Proposals for the development of backward districts -- Nalgonda, Mahbubnagar, Khammam, Nizamabad, Adilabad and Warangal districts with an estimation of Rs 20,000 crore has been pending for two years before the Centre.

Under the Reorganisation Act, Schedule 94 (2) says that the Centre will extend all help for the development of backward districts under backward area development package. “Telangana government expected Rs 4,500 crore as central assistance in 2014-15 but no allocations were made under the backward areas development package. This year also, no funds were earmarked for Telangana so far,” officials said.

The Finance Minister said the demand to increase its borrowing limit from 3 per cent to 3.5 per cent of Gross State Domestic Product under the Fiscal Responsibility and Budget Management (FRBM) Act has been pending before the Centre from 2014.

If the Centre agrees, the State will get opportunity to avail Rs 5,000 crore borrowings. He said he had made a strong plea with the Centre on these issues during the just-concluded pre-budget meeting in New Delhi.