Imposing pointless conditions on loans will stifle States: Tamil Nadu CM

Palaniswami was referring to conditions put forward by Centre to raise borrowing limits from 3% to 5% of GSDP for this financial year

Tamil Nadu Chief Minister Edappadi K Palaniswami has criticised the Central government's move to impose conditions such as linking states' borrowing requirement with reforms in the power sector, in order to get additional limits. He said such a move will serve as an impediment to the State governments' efforts in mobilising funds to ease the serious financial situation vaused by Covid-19. 

Palaniswami was referring to the conditions put forward by the Central government to avail the benefit of raising borrowing limits from three per cent to five per cent of the Gross Domestic Product (GSDP) for this financial year. He said