SHILLONG, March 14: Chief Minister, Conrad K Sangma on Monday defended his government’s decision to take loans from external agencies and public finance bodies.
Replying to Budget discussion in the Assembly, he said it is an irony that some members, who met him earlier to seek funds for road projects, infrastructure development and construction of block development offices, are now raising questions over government spending and asked the government to exercise caution over funds raised from the market.
According to him, developmental projects such as roads, school buildings and other infrastructure development will happen only if the government has adequate financial resources.
“We are taking loans but we are not increasing the loan amount from the market on our will. Whatever funds coming in through loans, public finances and borrowings are within the mandate given by the Centre. The Government of India (GoI) allows every state to take certain amount of loan and we have utilised that amount. What is wrong in that?” the CM asked.
He said the state government has to ensure it does not cross the loan limit set by the Government of India. He also observed that the funds, which the state has managed to get sanctioned for various centrally-sponsored schemes like PMGSY, JJM and MGNREGA, are due to the efficiency of the PWD (Roads), PHE and C&RD departments.
Sangma revealed that for the first time, the state will set up 14 C&RD blocks across the state with a total sanction of Rs 120 crore. He also said that an unprecedented Rs 350 crore has been earmarked for health centres.
“All these projects require funds and we have mobilised to get the funds. It is not a simple thing to get funds. All these infrastructure projects have been funded through different formats,” he told the House, adding that in the last four years, the government has been able to mobilise around Rs 8,000 crore from external agencies at a share of 80:20 for developmental projects.
“We have managed to get funding due to the successful implementation of various programmes,” Sangma said.
He further said that the largest scheme for the farmers in the country today is being run by Meghalaya government.
“Despite passing through a difficult phase owing to COVID, we decided to give Rs 5,000 each to the farmers and form producers’ groups,” the CM said.
According to him, the state government is also implementing mission programme worth about Rs 7,000 crore.
“Road projects of more than Rs 2,500 crore are being implemented. We are also implementing water supply programme worth Rs 786 crore and over Rs 2,000 crore will be implemented in the years to come,” Sangma said.
The CM claimed the government managed to bring huge reforms in the power sector. “There is a huge gap in terms of expenditure and revenue of MeECL (Meghalaya Energy Corporation Limited). The problem has been there for multiple reasons,” he said.
According to him, the Aggregate Technical and Commercial (AT&C) losses of the MeECL are at 30% which is the highest in the country.
“We are targeting to bring down the AT&C losses with the improvement of overall distribution system,” the CM said.
He further stated that the government is trying to achieve the target through reforms mandated by the GoI like the introduction of smart meters to create efficiency billing and through the new revamp distribution scheme launched by the Centre.
“We are the first state to submit the proposal and DPR which was valued at Rs 2600 crore under the new scheme. We expect massive improvement in the distribution system at the grassroots level which will lead to reduction of the AT&C losses,” Sangma said.
He informed the House that the state government has approached the judiciary to learn if the entire fixed charge of Rs 146 crore needed to be paid to the NTPC annually can be scrapped.
He also said that the state government had to avail the Atma Nirbhar loan to pay back pending dues to various power-generating agencies.
“We have so far cleared over 90% of the pending dues which is a huge relief for the state government, MeECL and the people of the state. People will see there is no more regulation of power cuts,” Sangma said.
He said the state government is investing over Rs 1,200 crore in the upgradation of schools, education centres and EMRS projects.
“We will also be looking to provide financial assistance to more than 1,000 smaller schools which need small renovation funds,” the CM said.
He said this is for the first time that all important administrative offices, police stations and offices of SPs and DCs in the state are being renovated.
“We have earmarked Rs 100 crore for the construction of offices of SPs,” Sangma added.
Earlier, Opposition leader Mukul Sangma advised the state government to be cautious while borrowing money from the open market.
“We need to look at the available resources to reduce the burden of borrowings. Substantial amount of caution needs to be taken before borrowing from the open market,” Sangma said while taking part in the general discussion on the budget on Monday.
“We need to keep the fiscal health of the state in good condition to maintain the credit rating of the state,” he said.