New Delhi, Sept 23: Government today decided to
extend a medium term loan totaling Rs 3,154 crore to five
states which are facing severe overdraft problems.
The five states are West Bengal, Assam, Orissa, Rajasthan
and Manipur, official sources said here.
While West Bengal topped the list with Rs 878 crore,
followed by Assam with Rs 750 crore, Orissa would get Rs 672
crore, Rajasthan Rs 463 crore and Manipur Rs 371 crore, they
said.
The assistance would be for five years and the coupon on
these loans would be the same as the RBI's ways and means
assistance to the states.
The decision to "ameliorate" the ways and means position
of these states, facing serious overdraft problems, was taken
especially in view of treasuries in Assam and Manipur
remaining closed for almost 60 days at a stretch, leading to a
serious erosion of credibility of the state governments as
well as fuelling the already unstable law and order problem,
the sources said.
Bureau Report
