Rs 1 lakh crore grant to states will help in fight against COVID-19: CM Gehlot suggests PM

Image
Press Trust of India Jaipur
Last Updated : Mar 28 2020 | 8:18 PM IST

Chief Minister Ashok Gehlot wrote to Prime Minister Narendra Modi on Saturday, urging him to take measures like granting of Rs 1 lakh crore to states to tackle the COVID-19 pandemic and problems during the lockdown to stop the disease's spread.

The first instalment of the grant should be given to states based on per person population. Later, the grant amount can be given more to the states where the infection rate is high, and proportionally to the remaining states, the chief minister said in his letter to Modi.

Gehlot, while extending gratitude to the prime minister for announcing an economic package in the wake of the COVID-19 pandemic, said the Centre and states have to jointly fight this pandemic.

He said the Centre should direct the Reserve Bank of India to provide Rs 1 lakh crore to states as an interest-free advance.

This should be done for 11 months from April 1, the chief minister said in his letter.

He mentioned that economies of the states have been adversely affected due to the COVID-19 pandemic.

Noting the huge decline in tax and non-tax revenue, he said permission for additional two per cent credit limit should be given immediately from the Net Credit Limit which the states get.

The chief minister said states expect that the Centre should grant moratorium of at least three months in the payment of instalments due to the RBI and other financial institutions.

Gehlot said that people are facing a crisis due to the lockdown.

To save the people from starvation, the Rajasthan government is making all possible efforts to maintain the supply chain of essential items along with a direction to provide cash to the weak and deprived sections of the society, he said.

The chief minister said the state government by increasing expenses in the health sector has taken measures with full capacity to stop the effect of this pandemic.

Despite the efforts being made to fight with this disease, the state has its limits to raise new resources, he said.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 28 2020 | 8:18 PM IST

Next Story