Gujarat to get additional Rs 1500 crore from Centre under AIBP, Dy CM thanks PM

Gandhinagar: Gujarat will have Rs 1500 crore additional benefit thanks to a decision taken by the Centre considering Rann area of Gujarat as scarcity-hit.

Deputy Chief Minister Nitin Patel sharing the details of this decision today said: son of Gujarat, Prime Minister Narendra Modi took this decision which will benefit Gujarat.

Patel said: Centre gives financial aid under Accelerated Irrigation Benefit Programme to states. While 75% share of total cost of canal construction is released as Centre’s share in case of scarcity-hit areas, the other areas attract only 25% share by Centre. The Rann of Kutch area in Gujarat was not considered scarcity-hit area and therefore , it was attracting merely 25% share by Centre while State share was 75% for canals. Then Chief Minister of Gujarat Narendra Modi had made representations before then Congress-led UPA government in Centre to correct the definition and allocate more grant for scarcity-hit Rann of Kutch area of Gujarat. After becoming Prime Minister, the BJP government in Centre has tweaked the definition thanks to which, now Gujarat will get 75% central assistance for canal in Rann area. Now the Centre will contribute 57% instead of earlier 38% which will result into benefit of additional Rs 1500 crore for Gujarat.

Nitin Patel further said: Gujarat is crude oil producing state. Then UPA government in Centre had changed the method of royalty payment to States which resulted into slide in revenue for Gujarat. The State government had therefore moved High Court and received judgement in its favor eventually in this issue. However then UPA government had challenged the High Court decision in the Supreme Court in order to continue to do ‘injustice’ to Gujarat. The Supreme Court had in its interim order asked ONGC to pay full royalty to Gujarat. In response to Gujarat government’s representation before the Centre, the Prime Minister Narendra Modi had asked central govt arm ONGC to immediately pay Rs 7300 crore royalty to Gujarat. This amount has been paid to Gujarat in two installments – Rs 1300 crore in first installment and Rs 6000 crore in second installment recently on September 6.

DeshGujarat