Maintain amount of special assistance to states for capital investment as before: OP Choudhary

Proposes rail network expansion in Chhattisgarh, urges establishment of Industrial Corridor, Textile Park, Medical Device Park

New Delhi (Team Newsbuddy) : Chhattisgarh Finance Minister O P Choudhary attended the pre-budget meeting and submitted a comprehensive set of proposals in the interest of the state, including the amount of special assistance to the states, development of the State Capital Region and expansion of the rail network in the state. He highlighted Chhattisgarh’s strategic priorities for the upcoming fiscal year.

Union Finance Minister Nirmala Sitharaman, Union Minister of State for Finance Pankaj Choudhary as well as Finance Ministers of other states were present in the pre-budget meeting held at Bharat Mandapam, Pragati Maidan, here.

In the meeting, on behalf of the Chhattisgarh government, Finance Minister OP Choudhary praised the progress of India’s economy and the steps taken towards the goal of developed India by 2047. He also praised the development work being done in the field of agriculture, health, education, administration, and public facilities through infrastructure construction, skill enhancement, entrepreneurship development, and applications of modern information technology in the country.

Referring to the ‘Special Assistance Scheme for Capital Investment to States’ under which Rs 1 one lakh crore has to be allocated as the Part I allocation, Chhattisgarh Finance minister O P Choudhary said that in the Interim Budget 2024-25, a provision of Rs 1,30,000 crore has been made for this scheme, same as last year, but under the Part I allocation, the provision has been revised from Rs 1 lakh crore to Rs 55,000 crore.

He urged the union minister to maintain the allocation at Rs 1 lakh crore as in previous years as it will support ongoing capital projects effectively. He suggested that the remaining amount can be kept for the state capital as reform-based incentives and special projects.

The scheme was launched for the first time in fiscal year 2020-21 under which 50-year interest free loan is provided. The allocation is made in eight parts under the scheme.

The state finance minister informed the meeting that Nava Raipur Atal Nagar, the new capital of Chhattisgarh, is being developed as the most planned and green city of the country. Roads, drinking water, electricity facilities, housing and other infrastructure have been constructed with the limited resources of the state, but the new capital is to be developed connecting Raipur and Durg-Bhilai as a State Capital Region on the lines of NCR with modern urban facilities.

He urged the union minister to allocate sufficient funds to develop Nava Raipur Atal Nagar into a State Capital Region with modern urban facilities, fostering economic growth and employment opportunities.

He added that in the next few years, Nava Raipur will be developed as an investment hub of information technology, finance, banking and other services, a greenfield city for electronic industries and green energy.

Choudhary mentioned that the Industrial Corridor projects approved by the Government of India do not pass-through Chhattisgarh and requested the Centre to make a provision in the upcoming budget to develop Nagpur-Raipur-Visakhapatnam new industrial corridor or to connect Raipur with the currently proposed corridor to boost industrial growth.

Highlighting that the rail network in the state is much less than the national average and the transportation of minerals from mines in Chhattisgarh is mostly done by road, the state finance minister urged FM Nirmala Sitharaman for approval of funds for expansion works of rail facilities in Chhattisgarh in the budget to reduce dependence on road transport and facilitate industrial development.

The Chhattisgarh finance minister sought approval for setting up a textile park and a medical device park to enhance manufacturing capabilities in the state. He stated that under the PM Mega Integrated textile regions and apprel parks (PM MITRAs), a proposal for setting up a textile park in Chhattisgarh has been sent to the Ministry of Textiles, Government of India in March 2022, but it has not yet received approval. Apart from this, a proposal has also been sent to the Ministry of Chemicals and Fertilizers, Government of India in September 2020 for the establishment of a Medical Device Park in the state, whose approval is expected.

Choudhary also sought provision for the maintenance and construction of roads in forested, inaccessible, and slum areas, including those leading to Central Security Forces camps. He highlighted that a network of roads of more than 40 thousand kilometers length has been constructed in more than 20 thousand villages of the state under the Pradhan Mantri Gram Sadak Yojana due to scattered population and the expenditure on its maintenance is very high.

He sought approval of funds for establishing an Integrated Geriatric Health Center in Raipur to support elderly healthcare needs. He urged the union finance minister to consider increasing rates under Pradhan Mantri Poshan Shakti Nirman Yojana and Ayushman Bharat PM Jan Arogya Yojana to align with inflation rates.

Drawing the Centre’s attention on the pending payments and compensations to Chhattisgarh in various ministries, O P Choudhary requested for issuing necessary instructions to the concerned ministries / departments on these subjects to release the amount soon in the interest of the state.
He sought support for establishing international air services from Raipur Airport to enhance connectivity and tourism potential of the state. Choudhary also requested for setting up Eklavya schools in all tribal development blocks and 2 Navodaya Vidyalaya in aspirational districts.

According to the new DMF (District Mineral Fund) rules recently issued by the Government of India, DMF can be used only on people living within 15 km of the mine area or up to 25 km from the mine. Under the earlier rules, up to 75% of the DMF funds could be spent in the same district in which the mine is located, while the remaining 25% could also be spent in nearby districts.

Many new districts have been formed in Chhattisgarh in recent years, which has led to a greater need to spend DMF funds on a need basis for development work in the surrounding districts. But the new DMF rules prohibit this, which may hinder the development work of nearby districts.

Due to this new rule, there may be a decrease in the availability of funds for development projects in the districts adjacent to the mining areas, due to which the population there may face potential problems. Finance Minister Choudhary has urged to change this rule in the context of Chhattisgarh. So that equal development of areas around the mineral rich districts can also be ensured.

Union Finance Minister took the suggestions positively and has assured to provide more financial support for the development of the state and public welfare works.

Along with the Finance Minister of Chhattisgarh, Finance Secretary Mukesh Bansal was also present in the meeting.