R. ARIVANANTHAM
CHENNAI, MARCH 25
A day after doling out Rs 3,280 crore relief package for the supply of free ration commodities and Rs 1,000 per family for the loss of wages, Tamil Nadu Chief Minister Edappadi K. Palaniswami has sought special assistance of Rs. 4,000 crore from the Centre to implement measures to tackle COVID19.
Chief Minister appeals people to keep indoor during 21 day lockdown to prevent spreading COVID-19
Video Courtesy: DIPR
Therefore, as a one-time measure, the fiscal deficit limit of three per cent of Gross State Domestic Product may be relaxed for financial years 2019-20 and 2020-21. Further, additional borrowing of 33 per cent above the level permitted for the fiscal year 2019-20 may be allowed for 2020-21 to enable the States to meet the additional expenditure requirements, Chief Minister K Palaniswami said in a letter to Prime Minister Narendra Modi.
In his letter, Palaniswami said “Keeping in view the urgency of the tasks on hand to meet the challenges of tackling the COVID 19 pandemic and to support the Government of Tamil Nadu financially, as it takes massive preventive operations and relieve the considerable hardship placed on the poor, I request you urgently consider my request for special assistance of Rs 4,000 crore and related financial relief measures expeditiously.”
He said the unprecedented situation, state’s revenues have also taken a hit and the expenditure needs have risen considerably, he added.
Congratulating the Prime Minister for the “bold and decisive measures” he has taken to combat Covid-19 and all Indians from the deadly virus, the Chief Minister said the state had already announced and implemented a lockdown with effect from March 24, 2020, and the State Government and its machinery have been fully geared to implement the lockdown effectively while ensuring the availability of essential requirements and services.
“I also thank you for having announced a special allocation of Rs 15,000 crore to strengthen health infrastructure of the country, including the creation of isolation facilities, provision of ventilators and personal protective equipment (PPE) to combat the pandemic. I had already announced a package measures to strengthen the health infrastructure in Tamil Nadu,” the Chief Minister said.
TN earmarks 10,000 beds in isolation wards
The Chief Minister also said the state has earmarked 10,000 beds in isolation wards both in Government and Private hospitals to treat COVID-19 patients throughout the state.
Tamil Nadu is vulnerable to this virus, because of the large number of international passengers who transit through the four international airports and four major ports in the State. It also adjoins States where the outbreak has been initially more severe.
“Further, private hospitals also would need to be equipped and their services utilised to treat patients free of cost. Extensive sanitation and disinfection measures would need to be undertaken. Hence I request an allotment of Rs 3,000 crore for augmenting and strengthening the health infrastructure and for essential equipment, medicines and preventive public health measures at this crucial juncture,” said the Chief Minister. Further, the lockdown for 21 days will add to the huge strain that the economy of the State has already been put under. Financial package for industries, MSMEs.
A large number of industries and businesses, especially MSMEs face a considerable loss of production and markets. Cash flows are heavily constrained making it very difficult for them to meet their tax, statutory dues payment, and bank loan interest payment and loan repayment obligations.
Keeping these in view, the state is requesting a special measure such as – rescheduling of bank loan repayments at least for two quarters, without treating them as NPAs. Interest and penalties can be waived for the two quarters. The working capital loans to all industries and businesses can be enhanced by 50 per cent without seeking any additional collateral from the enterprises.
Palaniswami also said that workers dependent on MGNREGA wages have been put to considerable hardship. The monthly MGNREGA wage bill in Tamil Nadu is Rs 400 crore. Although some types of small works have been permitted, it is expected that at least 50 per cent of the wage employment would be last. To relieve their hardship “I request that at least Rs 500 crore be released as a special allocation to pay 50 per cent wages for the wage employment lost in March, April and May 2020,” the Chief Minister said.
Plight of unorganised labour
“The state has approximately 12 lakh construction workers and 15 lakh workers in the other unorganized sector, who would be facing undue hardship during this lockdown period. I have announced a special package of Rs 1000 along with 15 kg of rice, and 1 kg each of dhall and cooking oil supplied free of cost. However, the state would need more support for the wage loss which is now likely for a longer period of at least two more weeks. Hence, I request you to allot a sum of Rs 500 crores to provide a special wage loss and relief package for unorganized sector workers in the State to help them overcome their immediate hardships,” the letter said.
