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Tamil Nadu urge Centre to form Cauvery Management Board immediately

State sought legally binding assurance on the issue price of food grains for the additional assured quantity provided for those States

BS Reporter Chennai
Tamil Nadu Government has urged the Centre form the Cauvery Management Board and the Cauvery Water Regulation Committee for the implementation of the Final Order of the Cauvery Water Disputes Tribunal immediately, deployment of Central Industrial Security Force to guard the Mullai Periyar Dam, support for inter-linking river projects worth Rs 7,528 crore.

Tamil Nadu Chief Minister J Jayalalithaa today submitted a Memorandum to the Prime Minister Narendra Modi, who visited Jayalaithaa at her residence during his first official visit to Chennai today.

In the memorandum, she urged the Ministry of Power to complete the bidding process for the 4000 MW Cheyyur Ultra Mega Power Project and asked for speedy Completion of Inter-regional Transmission Lines, since the State entered into long term PPA to buy 2158 MW from generators located outside the State.

 

She said, the 14th Finance Commission she said, "Tamil Nadu has been singled out for the sharpest reduction in its share in the divisible pool of taxes". As against 4.969% share in the divisible pool of Central Taxes recommended by 13th FC, Tamil Nadu's share has come down to 4.023% in the 14th FC's recommendations.

"The unbalanced formula adopted by the 14th FC has treated Tamil Nadu most adversely. The reduction in the inter-se share of Tamil Nadu of 19.14 per cent represents the biggest loss in share amongst all States. Tamil Nadu has been doubly penalised for its prudent fiscal management as it has not received revenue deficit grants," said in the memorandum.

Drop in Tamil Nadu's share in the divisible pool is barely compensated by the increase in the overall devolution pool by 10 per cent and Tamil Nadu's overall share in Central taxes has increased by just 0.1 per cent from 1.59 per cent to 1.69 per cent.

The loss to Tamil Nadu, due to the reduction in its share in the divisible pool and the discontinuance of special purpose and state specific grants is estimated at Rs 6000 crores per annum.

Centrally Sponsored Schemes, the States' share should be limited to a maximum of 25% of the scheme cost in order to ensure that the States' own expenditure priorities are not distorted..

"I strongly urge you to ensure that the step motherly treatment meted out to Tamil Nadu by the Fourteenth Finance Commission is at least in part redressed by a sizeable allocation to Tamil Nadu out of the funds set apart for schemes to be approved by the NITI Aayog," said the Chief Minister.

National Food Security Act:

Tamil Nadu sought a legally binding assurance on the issue price of food grains for the additional assured quantity provided for those States which are already drawing food grains over and above the guaranteed quantity under the Act.

Preferably the entire urban population should be covered as households eligible for allocation of subsidised food grains. Alternatively, at least 75 percent of the urban population should be covered as in rural areas.

The Chief Minister said Schedule I of the Act assures the limited allocation of subsidised food grains only for a period of 3 years from the commencement of the Act. The guarantee of supply of subsidised food grains with an assured level of subsidy from the Centre should be for a period of at least 10 years.

A provision to obligate the Centre to import food in times of scarcity is very crucial to make this legislation truly a Food Security Act. The "Provisioning of Funds to State Governments for Short Supply of Foodgrains Rules, 2014" are not an adequate safeguard of the interests of Tamil Nadu.

The provision in the Act empowering the Centre to introduce cash transfer and food coupon schemes is objected by Tamil Nadu and this must be amended with a clear indication that any cash transfer scheme can be introduced only with the concurrence of the State Government.

"While these lacunae in the Act are being addressed, I request that the implementation of the National Food Security Act, and in particular the time period for identification of eligible families should be deferred by at least two more years," said the Chief Minister.

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First Published: Aug 07 2015 | 2:28 PM IST

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