Modi`s memorandum to FM listing issues of Guj with Centre
Gujarat Chief Minister Narendra Modi gave a memorandum, listing host of issues the state has with the Centre, to union Finance Minister Pranab Mukherjee during his meeting with the later here today.
Ahmedabad: Gujarat Chief Minister Narendra
Modi gave a memorandum, listing host of issues the state has
with the Centre, to union Finance Minister Pranab Mukherjee
during his meeting with the later here today.
In the memorandum Modi has said that Gujarat was yet
to get Rs 2244 crore rebate on Central Sales Tax (CST) from
the centre pending for the last thee years as was assured by
the Union government to the state for funding revenue deficit.
State has also suffered a loss of Rs 2,000 crore due to
sudden change in the norms for crude oil royalty from
"market-driven price formula" to "discounted price formula"
since 2008, he said.
Referring to the contribution of Gujarat Maritime
Board (GMB) ports in the foreign trade of the country, the
memorandum said the board used to get exemption from income
tax under the Central Finance Act, but the burden was imposed
Modi alleged that Centre was doing injustice to Gujarat
in allocation of natural gas. Gujarat has to compulsorily buy
the gas from Petronet LNG at a higher price, despite being the
only state to have laid 1,650-km long gas distribution
pipeline network across 16 districts, while other states are
provided gas at a much cheaper rate from the Reliance`s KG
Basin, he added.
He demanded a minimum allocation of 5-mmscmd gas to
the state-promoted Gujarat State Petroleum Corporation (GSPC)
from KG Basin.
The memorandum also drew attention of the finance
minister to the problem of lakhs of cotton growers of Gujarat
following imposition of steep licence fee on export of raw
cotton from May 21, 2010, while lifting ban on export,
indirectly discouraging export.
Gujarat has demanded immediate withdrawal of the licence
fee on cotton as the state produces one-third of cotton and
the farmers here are the most hit, the memorandum said.
The memorandum also demanded withdrawal of Income-Tax
on urban co-operative banks imposed since April 1, 2009, as
lakhs of poor and middle class deposit their savings in such
banks in the state.
Mukherjee after the meeting said that he has received
the memorandum and will to go through it.