LUCKNOW: Chief minister Akhilesh Yadav has sought elaborate details from the Centre vis-a-vis the proposed interest rates of BRICS New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB).
In a letter to written Prime Minister Narendra Modi (on Sunday), the UP chief minister said that he was asked by the Centre about projects which could be financed through these banks via two letters in June and July. "However, the rules and regulations, rate of interest, Centre's role in the process has not been mentioned in it. Owing to the lack of these information, it was not possible to sent a proposal to Centre," he said, and added that as soon as the picture on the above mentioned points are clear, the state government would send its proposal.Lauding the Centre's role in the establishment of NDB and AIIB, Yadav suggested to make them an "effective alternative in the current system". The CM also mentioned that besides the Centre, UP would also be able to get money at reasonable interest from these banks for development of infrastructure facilities.
The Asian Infrastructure Investment Bank (AIIB) is a proposed international financial institution focused on supporting infrastructure construction in the Asia-Pacific region. New Development Bank (NDB) or BRICS Development Bank is a multilateral development bank operated by the BRICS nations — Brazil, Russia, India, China and South Africa-- as an alternative to the existing the US and European-dominated World Bank and International Monetary Fund. Drawing the attention of PM, Akhilesh in his letter mentioned that the state is already abiding by the 3% (of the Gross State Domestic Product) loan limit, and as a result the scope of availing further loans from these banks is not possible. "From the letter, it also seems that the loans would be available for the special schemes of the banks. The scope of infrastructure development in Uttar Pradesh is huge, for which there immense necessity of loans," the CM's letter observed. The CM also mentioned that the Centre can play a pro-active role in availability of loans. "However, it (Centre) should take care to ensure that loans from these banks is kept outside the ambit of 3% loan limit," the CM said, and stressed that in order to enforce financial discipline, the extra loan limit should be fixed at 1% of GSDP and the facility should be only applicable for revenue surplus states.
No comments:
Post a Comment