State eyes Rs 1,500-cr NABARD loan

SHILLONG, Dec 21: Cash-strapped Meghalaya will now avail a loan of Rs 1,500 crore under the NABARD Infrastructure Development Assistance (NIDA).
The State Cabinet on Tuesday approved the decision to submit a proposal to NABARD to avail the fund under NIDA, which is based on the overall revenue earning capacity of the state and is a loan component meant for infrastructure development work.
“Through this fund, we intend to create infrastructure for the over 40 Community & Rural development Blocks. We are budgeting over Rs 100 crore for LP schools and we will develop administrative buildings and units including those of police stations. We are submitting proposals of Rs 1500 crore to NABARD,” Chief Minister Conrad Sangma told reporters after the cabinet meeting.
Making it clear that the loan does not come under the state’s budgetary provisions, Sangma said that the proposal will now be sent to NABARD for approval and once sanctioned, the state would have to repay the loan within 15 years with an interest component of 7.5%.
In another decision, the state Cabinet has approved the amendment to the Meghalaya Fiscal Responsibility and Budget Management Act, 2006.
As per the amendment, the normal borrowing ceiling of Meghalaya has been increased from 3 per cent to 4 per cent of the Gross State Domestic Product, in line with the recommendations of the 15th Finance Commission and a notification from the Union Ministry of Finance.
Besides, the Cabinet has also approved a proposal to change the nomenclature of the Department of Prisons to the Department of Prisons & Correctional Services in line with a central government notification.
Further, the state Cabinet has approved the appointment of retired Deputy Secretary Teillang S. Pyngrope as the Secretary of the Meghalaya Consumer Disputes Redressal Commission.
The state Cabinet also unanimously gave post facto approval for shifting of the headquarters of the Khliehriat C&RD Block to Wapung.