Maharashtra seeks interest rate relief from Centre

MUMBAI: Facing a debt of over Rs 4 lakh crore, the Maharashtra government has sought an immediate reduction in interest rate on loans from the Centre.

On Sunday , Maharashtra finance minister Sudhir Mungantiwar raised this demand in a meeting with Union finance minister Arun Jaitley. Mungantiwar was accomapnied by a delegation representing various industries in the state.

“The previous government (Cong-NCP) had taken a loan of Rs 75,000 crore from the Centre. We want the interest rate to be brought down from the current 9.5% to 6.5%,“ said Mungantiwar.

According to him, Jaitely assured that the Centre will `consider' the state's demand on reduction in interest rate.

Mungantiwar also said that the state government wanted the window to export onion, which expires on March 31, to be extended by another three months to help distressed onion farmers who are facing a drastic fall in prices.

Meanwhile, industry representatives also gave presented their concern on GST to the finance minister. The representatives of the gems and jewellery industry sought exemption from GST on the ground that being an export based industry, any higher taxation will make them uncompetitive compared with other jewellery exporting countries.

Representatives of multiplexes, grain merchants also wanted exemption from GST. Jaitley heard them out and assured them that their pleas will be considered.

The representatives of the petroleum and liquor manufacturing business asked the government to exclude raw materials used by them from GST as this may result in higher prices. Jaitley is learnt to have told them that their suggestion would be considered only after GST comes into effect and after having a look at the revenue collection from the sector.