Relax debt norms: KCR

CM attends NITI Aayog sub-committee meet

• Seeks IT waiver for HMDA
• Meets Gadkari for development of six vital roads

Hyderabad: The Telangana Chief Minister K Chandrasekhar Rao is making all out efforts to see that the Centre permits Telangana to relax the Fiscal Responsibility and Budget Management (FRBM) norms so that the State government could raise funds through more loans

Rao on Tuesday met Union Finance Minister Arun Jaitley first and later held discussions with Transport Minister Nitin Gadkari on key issues concerning the State. This includes relaxing of FRBM limit from existing 3 to 3.5, giving IT exemption to HMDA, development of roads and some routes connecting neighboring states with Telangana. Later in the day, he took part in NITI Aayog sub-committee meeting to prepare final report on Centre sponsored schemes for States.

Rao explained to the Finance Minister as to why there was a need relax FRBM norms. He told him that it would enable the State to get more funds for speedy development.

He explained to him about 14th Finance Commission recommendations which said that States with revenue surplus could be permitted to access market borrowings at the rate of 3.5 per cent of the State GDP by raising ceiling of FRBM limit from 3 to 3.5 per cent. Rao pointed out that Telangana would get Rs 3,000 crore more if FRBM norms were relaxed. Jaitley said that his ministry would examine the proposal and take a decision.

Further, KCR sought IT exemption to HMDA by including provisions in Finance Act, 2016 to ensure urban development bodies are exempted from the annual tax. Since the Urban Development Authority is an autonomous body created especially to plan, promote and execute development projects in urban areas,

the income derived by it through licence fee, development charges or other revenue generating activities need to be looked into with a fresh perspective. There was a similar provision in the Income Tax Act till 2002 to exempt all such state agencies from income tax, Rao explained.

He also apprised Jaitley of government’s flagship programs such as Water Grid, Mission Kakatiya and others. The Chief Minister also asked Jaitley to enhance funds allocation to the infant State and give share in funds of Central schemes.

He later called on Nitin Gadkari along with Roads and Buildings Minister Tummala Nageswara Rao. He sought development of six state roads (Hyderabad to Bhainsa, Hyderabad to Bijapur, Kodad-Jadcharla, Nirmal-Jagtiyal, Ashwaraopet-Khammam-Suryapet and Karimnagar-Pitlam) of 1015 km into national highways as mentioned in AP Reorganisation Act.

He also urged upgradation of the State road from Madnoor (on NH-161) to Nizamabad (on NH-63) to complete connectivity between Karnataka, Telangana and Chhattisgarh states.

Further, Rao appealed to Gadkari to widen the existing 4-lane road from Aramgarh to Shamshabad Airport (10 km) to 6-lane for smooth movement of traffic.

He also urged the Central minister to sanction Rs 150 crore for improvement of Hyderabad roads that are under National Highway Authority. The Chief Minister will be calling on President Pranab Mukherjee, Union Home Minister Rajnath Singh and Minister for Information and Broadcasting Minister Prakash Javdekar on Wednesday.