Maharashtra Chief Minister Sushilkumar Shinde has been promised a decision on the financial assistance sought by him for Maharashtra within a weeks time by Union Finance Minister Jaswant Singh.
A visibly pleased Shinde spoke to Business Standard on a host of issues. Excerpts:
What financial recast plan have you discussed with the Union government and what has been the outcome?
I met Prime Minister Atal Bihari Vajpayee and Jaswant Singh on Friday (February 7) as well as the special advisor to the finance ministry, Vijay Kelkar. The finance minister considered all my suggestions sympathetically. I am thankful to him as he has promised to take a decision on these issues within a week.
While the centre has not agreed to anything yet, they have appointed a committee to consider everything that we have put across. My finance secretary has been summoned in this regard on February 15.
This is a far cry from Maharashtra's experience over the last four months at least. I am told that for this period the Centre did not once respond to repeated missives sent by the state. Now they have responded and I see that as a very positive development.
What have you specifically sought from the centre?
Basically I asked them to reduce the rate of interest on Central government loans (debt recast) as well as a deferral on the payments or the facility of repayments using the installments route. I have also sought a soft loan of Rs 1000 crore (Rs billion) to held Maharashtra tide over its liquidity crisis.
How do you intend to put the state's finances back on track by the fiscal 2005-06? Even with the liquidity crisis almost resolved through central assistance what long term strategies are you contemplating?
My plans are to bring about a financial improvement by next year itself.
Basically, this will include inculcating fiscal discipline, some additional resource mobilisation and the soft loan sought from the Union government which would be combined with the reductions in the rate of interest, deferment of repayments to financial institutions.
I have scheduled a meeting with the top honchos of the financial institutions on February 21 where we will seek this recast.
What about the various bond issues such as those raised by the Krishna Valley Irrigation Development Corporation that become due for repayment of principal and interest in this fiscal?
That is exactly what I am talking about. We are seeking a deferral (read rollover) among other things for these loans. We are seeking an Installment repayment facility.
You had recently announced a 50 per cent wage cut for all ministers in the jumbo cabinet. What other similar measures are on the anvil?
Apart from this announcement I also took a decision to trim my personal staff of 22, who have been diverted to other departments where a shortage of staff is being experienced.
Now several other ministers in my cabinet have followed suit and started shedding excess staff.
I have also attempted to bring about a clarity on the character of all the ministers. For this I have circulated a noted on the code of conduct for all ministers, besides sought details of personal assets owned by them.
