Frame policy on debt restructuring: Bengal urges centre

Facing a huge loan burden, West Bengal Monday urged the central government to frame a on regarding debt restructuring and providing a three-year moratorium on payment of installments.

Interacting with media persons after participating in a meeting in Delhi, West Bengal Finance Minister Amit Mitra alleged that a huge amount of money has been taken away from the state treasury on account of repayment of central loans.

"A huge amount of money has taken away from our treasury because of the debt," Mitra said after attending the meeting called by union Finance Minister Arun Jaitley with state finance ministers.

Mitra complained that the previous Congress-led government did not do anything to help West Bengal come out of the problem.

"We informed the new finance minister about the huge debt left behind by the Left Front government," he said.

When Trinamool came to power, the state already had a debt of Rs.2.03 lakh crore.

"We have asked the new government to frame a policy regarding debt restructuring and a three-year moratorium on installments," he said.

Facing a severe fund crunch, the Mamata 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. However, the Congress-led regime had not acceded to the demand.