BJP backs Mamata's demand for interest moratorium

The BJP Wednesday made common cause with West Bengal Chief Minister Mamata Banerjee, saying her demand for a three-year moratorium on interest on central loans was justified.

"The Left Front has left the state in financial ruin with a huge loan burden. Mamata demanded a three-year moratorium on interest payment. But the UPA (United Progressive Alliance) did not agree," Bharatiya Janata Party (BJP) president Rajnath Singh said at a party rally here.

"We are one with Mamata on this. The condition of the economy in Bengal is as bad as it was in Greece some time back. When Greece faced a severe economic crisis, the entire European Union came forward to bail it out. We feel the Congress-led UPA should have given a package to the people of Bengal for their benefit," Rajnath Singh said.

Facing severe financial crunch, the Banerjee government earlier placed a proposal before the 14th Finance Commission, demanding Rs.2,55,000 crore for five years (2015-20) besides rescheduling the 10-year State Development Loan (SDL) to a longer period of 15 to 20 years with a three-year interest moratorium.

But despite repeated demands by West Bengal for the moratorium, the UPA never acceded to it.