COVID-19: Tamil Nadu CM Palaniswami urges PM Modi to sanction Rs 1,000 cr adhoc grant from NDRF

In his address at the CM's meet organised by Mr Modi through video-conferencing, he said PCR and rapid test kits should be supplied by the Centre in large quantities
immediately.

He also sought sanction of Rs 3,000 already requested by the state for provision of PPEs, N-95 Masks, and ventilators in sufficient numbers.

He also urged Modi that Tamil Nadu may be allocated Rs 9,000 crore grant for launching a comprehensive plan for combating COVID-19 and its aftermath on the State’s
economy.

Apart from increasing the the fiscal deficit limits of three per cent of GSDP to 4.5 per cent for financial years 2019-20 and 2020-21, he also sought additional borrowing of 33 per cent above the permitted level for fiscal year 2019-20, be allowed for 2020-21 for combating this pandemic.

Palaniswami also urged the Prime Minister to release 50 per cent of the 2020-21 Finance Commission grants to the Urban and Rural Local bodies, besides the 50 per cent
of the revenue deficit grant and the GST compensation due for December-January 2019-20.

He also said the ways and means limit of the States, which was increased by 30 per cent by RBI, should be doubled and the advances availed in the fiscal year 2020-21 should be made interest-free.

Thanking Modi for releasing of Rs 510 crores under SDRF, he said the 15th Finance Commission methodology has resulted in Tamil Nadu getting only 64.65 per cent increase under SDRF, while for other States, it was 120.33 per cent.

Noting that Tamil Nadu has been facing many Natural disasters continuously over the years like Vardah in 2016, severe drought followed by Ockhi cyclone in 2017, Gaja cyclone in 2018 and still got lesser allocation under SDRF, he also requested the Prime Minister to sanction an adhoc grant of Rs 1,000 crores from NDRF immediately to procure medical and protective materials.