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Banerjee's first meeting with Modi after he became the prime minister comes against the backdrop of acrimony between her party Trinamool Congress (TMC) and the Bharatiya Janata Party.
Seeking a special financial package, including moratorium on loan payment for her debt-ridden state, Banerjee first met Modi in Parliament House and then along with a delegation of party members of Parliament (MPs).
During the meeting, Modi said he is fully committed for the development of West Bengal, a Prime Minister's Office statement said.
On the issue of debt waiver, Modi acknowledged that Banerjee's government had “inherited a large burden".
He told her his government too had “inherited a large burden” and “the Centre and states have to collectively find a solution to this", the statement said.
According to a TMC MP who was part of the delegation, Modi was non-committal on the debt waiver issue.
Modi said, “In any case, the 14th Finance Commission has taken into account the interest burden on states and has fully compensated the revenue deficit arising as a result of this. This is why West Bengal is getting an additional revenue deficit grant along with only two other non-special category states.”
Therefore, interest burden should not affect development activities any more in future."
Modi also said the Union government has decided to give West Bengal the royalty on coal and other minerals. This will provide a benefit of Rs 1,600 crore to the state yearly.
In addition, West Bengal will get Rs 11,200 crore from the coal blocks that have been auctioned so far and there will be even more revenue in future. Modi said West Bengal and Kolkata have to develop for their own sake and for the benefit of the region. “That is why we have an Act East policy. The region has talented people and a lot of resources," he said.
In the current scenario, West Bengal is better placed as compared to the past and has adequate funds to meet its development needs fully, the release quoted Modi as saying.
The West Bengal chief minister, who voiced concern over the funds pending for schemes such Mahatma Gandhi National Rural Employment Guarantee Scheme and Integrated Child Development Scheme, said Modi praised the state's financial performance in raising the revenue and assured her of help in maintaining fiscal discipline.
“The prime minister said Bengal's loan was maximum in comparison to other states. But he appreciated our efforts in keeping the financial discipline... He also praised our efforts and hoped financial situation would improve further. He (PM) said we will try (to help) because the country is also facing a crisis on financial front," Mamata told reporters after the meeting.
The prime minister said he is a firm believer in cooperative federalism and has constantly been stressing that only strong states can make a strong India. Therefore, states must be strengthened to meet the development needs of their people, he said.
