Gujarat, UP, others sought debt relief steps from Centre

NEW DELHI: Various states including Gujarat and Uttar Pradesh sought debt relief measures from the central government in recent past, Parliament was informed today.

In a written reply to the Lok Sabha, Minister of State for Finance Namo Narain Meena said requests received from states are dealt within the ambit of recommendations of the Finance Commission.

"State governments including Andhra Pradesh, Assam, Gujarat, Haryana, Kerala, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal have requested in recent past for various debt relief measures including with regard to outstanding liabilities of the states," he said.

The recent most comprehensive debt restructuring exercise was undertaken under the award of the Twelfth Finance Commission (TFC), Meena said.

"As recommended by TFC, loans extended by the Ministry of Finance amounting to Rs 1,22,348 crore, were consolidated and debt waiver of Rs 19,726 crore provided to eligible states during TFC award period," he noted.

As recommended by the Commission, loans for centrally sponsored schemes/central plan schemes to the extent of Rs 2,050.10 crore (were) written off in 2011-12.

"Further, an amount of Rs 220.83 crore, being repayment of principal and payment of interest under CSS/CPP made by states after March 31, 2010 has been adjusted against outstanding central loans from the Ministry of Finance, during 2012-13," Meena said.