Palaniswami seeks Rs 15,321 crore central aid to fight Covid-19

Expressing solidarity with the Centre in the handling of the China border issues, Tamil Nadu Chief Minister K Palaniswami on Wednesday sought Rs 15,321 crore to fight Covid-19.

Prime Minister Narendra Modi interacted with Chief Ministers through video link about spread of coronavirus.

"There are some unpleasant developments on the border. We stand united with you in this hour," Palaniswami told Modi referring to the violent stand-off between Indian and Chinese troops on Monday night.

Detailing steps taken to curb coronavirus, Palaniswami urged Modi to release the fund to help the state fight the pandemic.

Reiterating his request for Rs 3,000 crore to enhance availability of medical equipment, Palaniswami urged release of a second tranche of funds under the National Health Mission.

He also sought Rs 9,000 crore as special grant for combating Covid-19 and its impact on the state's economy.

"The GST (Goods and Services Tax) compensation for March may be released now. Also, 50 per cent of the 2020-21 Finance Commission grants to the urban and rural local bodies may be released," Palaniswami said.

According to him, the 'ways and means' limit of states, increased 30 per cent by the Reserve Bank of India (RBI), should be doubled and the advances availed in FY21 should be made interest free.

He also requested for Rs 1,000 crore ad hoc grant from the National Disaster Relief Fund and the pending custom-milled rice subsidy of Rs 1,321 crore to facilitate paddy procurement.

"Instruct Sidbi to provide at least Rs 1,000 crore as refinance facility to Tamil Nadu Industrial Investment Corporation from the RBI special packages. This will help revive the MSMEs in Tamil Nadu," Palaniswami said.

He also sought additional allocation of free grain and pulses.