Finance commission package for state debt: Deshmukh

The Union finance commission was considering a proposal to provide a special package to Maharashtra to enable the state wipe out its whopping Rs 1 lakh crore debt, chief minister Vilasrao Deshmukh said here today.

About half of the Rs 1 lakh crore financial debt was payable to the centre and the state had urged the finance commission to recommend a special package for Maharashtra, Deshmukh said.

The special package would contain reduced interest rates and certain waiver schemes but details were not known as it had not been finalised, the chief minister said.

The state government would also endeavour to find out ways and means to increase the revenue and obtain fresh loans at cheaper rate of interest to pay back sums obtained on higher interest rates, Deshmukh said.

The state would also try to woo NRIs for investment in Maharashtra and the recently held "pravasi diwas" evoked good response, he said adding that it would take some time for the investment proposals to translate into reality.

About the recent step taken by the state government to reduce the number of administrative posts, the chief minister said this was an administrative exercise for proper management and not done to cut down the costs.

The chief minister said his government would accord top priority to Vidarbha region which was backward. The state would develop roads, irrigation projects and cargo hub in Nagpur and other areas in Vidarbha in the next five years.

Asked why no development had taken place in Vidarbha, Marathwada and Konkan regions of Maharashtra in the last three decades despite congress rule, he said because these areas are traditionally backward.

About the slum demolition drive carried out by the state in Mumbai, he said the city was being cleaned and all those who had set up structures before 1995 would be protected but the rest would have to go.

To a question about Shiv Sena agitating over the illegal migrants from Bangladesh occupying slums in Mumbai, the chief minister said all those who flout laws would be asked to leave.

The state has also planned to set up new industrial estates in some backward areas but was not sure of investors coming there, the chief minister said adding that efforts would be made in this direction.

On the over-2000 MW Dabhol power project lying idle, the chief minister said the union government had to take a decision and the state was hopeful that some solution would be found.

Deshmukh also ruled out immediate cabinet expansion saying he was not in a hurry.

"There is no hurry... We shall expand the cabinet at an appropriate time", Deshmukh said in an interview.

Deshmukh was replying to a question whether he would fill the quota of three berths reserved for congress in the cabinet.

Denying that there was a rift between the NCP and congress, he said by and large these two partners of democratic front government got along well.

"Of course, there were minor differences but this could not be called a rift," the chief minister said.

Deshmukh said an implementation committee had been set up to study schemes such as free power to farmers and free notebooks for students announced by Congress and NCP in their joint manifesto for the assembly elections in October last year.

The implementation committee comprising representatives of NCP, Congress and the government would meet periodically to take a decision on these schemes, deshmukh said adding that DF constituents had five years to go to keep up their promises.