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Rangasamy seeks more Central funds

PUDUCHERRY: Chief Minister N. Rangasamy on Wednesday appealed to the Union government to substantially increase the Non-Plan Gap Grant and Central assistance to fund Plan programmes. He also appealed the Central government to consider declaring Karaikal region as a backward district.

Addressing the 54th National Development Council meeting in Delhi, Mr. Rangasamy said Non-Plan Grant to the Union Territory had remained static in the last four years though the government expenditure had increased manifold as a result of interest repayment on loan from Government of India and payment of dearness allowance instalments.

Though so far the administration managed the financial requirements from internal resources, the government was compelled to “utilise reimbursement of CST collections” to meet the additional needs under Non-Plan. As a result, the Plan size would go down sharply, he said adding that the government’s debt burden had increased to Rs. 2,181 crore as on November 30, 2007.

Mr. Rangasamy also requested the Union government to provide additional Central assistance from Backward District Grant Fund for infrastructure development in Karaikal region. Successive monsoon failure and inadequacy in the release of Cauvery water had led to lesser income from the farm sector and it has led to displacement of a large number of agricultural labourers, he said.

He also sought a package of incentive as non extension of sales tax-related concession to new business establishment has slowed down the industrial growth in the Union Territory.

Mr. Rangasamy stressed on the need for rail connectivity between Puducherry-Cuddalore and Puducherry-Tindivanam to keep up the economic development in the southern part of the Coromandel Coast. There was also an urgent need to widen and improve the Puducherry-Krishnagiri National Highway for better road connectivity between the Union Territory and Bangalore.

He also urged the Union government to consider the Union Territory’s proposal to augment power generation capacity of Puducherry Power Corporation Limited at Karaikal from 32.5 MW to 132.5 MW to meet the growing demand. He also sought funds in the Eleventh Plan for the proposed Combined Cycle Gas Power Plant project at Yanam.

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