New Delhi: Union Minister of Finance and Corporate Affairs Nirmala Sitharaman interacted with Chief Ministers of all the states and Finance Ministers/Lt Governors of Union Territories through virtual conference here today.
The Chief Ministers of Assam, Chhattisgarh, Goa, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura and Uttar Pradesh participated in the meeting. Lieutenant Governor of Jammu and Kashmir; Deputy Chief Ministers of Arunachal Pradesh, Bihar and Delhi. Ministers of State from Andhra Pradesh, Gujarat, Kerala, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand and West Bengal attended Monday’s meeting.
The meeting was considered to enhance the investment climate in view of the strong recovery in the country and opportunities for change in geopolitical realities post-pandemic.
Here are the highlights of FM Nirmala Sitharaman’s conversation with Chief Ministers, State Finance Ministers
1. The Center will release Rs 95,082 crore as tax devolution to states this month, which includes an upfront installment to help them increase their capital expenditure.
2. The FM said that he has suggested to the Finance Secretary that one more installment be given to the states on November 22 instead of the normal Rs 47,541 crore. So on November 22, Rs 95,082 crore will be given to the states.
3. Sitharaman suggested that states have a significant potential monetizable asset base which can be leveraged to increase the capital available for building new infrastructure and other social sector priorities.
4. During the meeting, the states also made some recommendations for facilitating investment- these include transparent mechanism for investment facilitation including sharing with states, leads of potential investors who are in touch with the Centre.
5. The states also called for a clear policy on environment and forest clearance by the Government of India on the lines of ‘eco-economics’ and more powers to the states under SOPs and forest/environmental matters.
6. He also emphasized the need for strengthening dispute resolution mechanisms, post-award contract enforcement and model concession agreements to strengthen the infrastructure PPP ecosystem.
7. Some states also suggested bringing in a policy for offshore wind power, apart from continuing the Centre’s loan scheme for capital expenditure after the current financial year.
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