Andhra, Chhattisgarh seek funds for new capitals, Kerala a special grant

NEW DELHI: Andhra Pradesh and Chhattisgarh on Saturday sought assistance for developing new state capitals, while others such as Tamil Nadu, Haryana and Odisha chipped in with demands for project-specific support, with Kerala demanding a Rs 24,000 crore special package to tide over a liquidity crisis.
With TDP, a key constituent of NDA govt at Centre, back in the saddle in Andhra, special package for the state - a long pending demand - was widely expected but sources said the state finance minister only sought support for several projects including for construction of a new capital in Amravati and Polavaram dam project.In contrast, during a pre-Budget meeting with Union finance minister Nirmala Sitharaman, Kerala came up with the demand.
"Considering the state's contribution in varied spheres in keeping up national pride which include but not limited to HDI, SDG, start up and innovation, a special package of at least Rs 24,000 crore may be announced in Union Budget 2024-25 to tide over the current liquidity stress by scheduling it over a period of two years from 2024-25," Kerala finance minister K N Balagopal said in a speech, while urging Centre to review the cap on market borrowings.
States such as Chhattisgarh also demanded easing of restrictions on export of rice and other farm products that have been banned to ensure adequate supply in domestic market. The BJP-ruled state also sought funds for Naya Raipur while seeking tweaks in the spending norms for district mineral fund.
Sitharaman told reporters that several states raised the issue of devolution of central taxes, an issue which is dealt with by the finance commission, and infrastructure with some of the states from the North-East seeking to work with the department of north eastern region (DONER). Several states have demanded money for capex, for which Centre has been extending support.
Haryana FM Jai Prakash Dalal on Saturday sought special grant assistance from Centre for implementation of various projects in the NCR, including 122-km Haryana orbital rail corridor from Palwal to Sonipat at a cost of Rs 11,600 crore and Delhi-Panipat fast rail corridor.
Similarly, Tamil Nadu FM Thangam Thenarasu sought budgetary provision of Rs 63,000 crore Chennai metro rail's second phase, which has been hanging for been awaiting CCEA clearance for three years, and funds for other projects. He also raised the demand for funds for disaster relief.