Key takeaways from FM Nirmala Sitharaman’s interaction with Chief Ministers, State Finance Ministers

New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman interacted with Chief Ministers and Finance Ministers of all States/ Lt Governors of UTs via virtual conference here today.

The meeting was attended by Chief Ministers of Assam, Chhattisgarh, Goa, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Tripura, and Uttar Pradesh. Lt Governors of Jammu and Kashmir; Deputy Chief Ministers of Arunachal Pradesh, Bihar, and Delhi. State ministers from Andhra Pradesh, Gujarat, Kerala, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, and West Bengal attended Monday’s meet.

The meeting was amied at enhancing the investment climate in the country in the wake of strong recovery and the opportunities accorded by a shift in geo-political realities post pandemic.

Here are the key takeaways from FM Nirmala Sitharaman’s interaction with Chief Ministers, State Finance Ministers

1. The Centre to release Rs 95,082 crore as tax devolution to the states this month after including one advance instalment to help them push their capital expenditure

2. FM said she has suggested the Finance Secretary that on November 22 instead of normal Rs 47,541 crore, the states be given one more instalment. So Rs 95,082 crore will be given to states on November 22.

3. Sitharaman suggested that there is a significant potentially monetizable asset base in states which could be leveraged to enhance the capital available for new infrastructure creation and other social sector pressing priorities.

4. During the meeting, states also gave certain recommendations to facilitate investment –these include Transparent Mechanism for Investment Facilitation that involves sharing with states, leads of prospective investors who are in touch with the Centre.

5. States also called for a clear-cut policy and SOPs on environment and forest clearances by Government of India, on the lines of ‘Eco-Economics’ and more powers to States under Forest/Environmental matters.

6. They also emphasised on the Need for strengthening of the dispute resolution mechanism, post-award contract enforcement and of model concession agreements to strengthen infrastructure PPP ecosystem.

7. Some states also suggested brining in policy for offshore wind energy, besides continuation of Centre’s Scheme of loan for capital expenditure beyond the current financial year.

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