TN approaches FM to release second instalment from CFC

S P Velumani

Chennai: Tamilnadu sought the Finance Ministry’s nod to grant the second instalment of funds from the Central Finance Commission to take up development work in urban and rural local bodies in the state.

Municipal Administration Minister S P Velumani called on Finance Minister Arun Jaitley in New Delhi and submitted the memorandum, seeking more funds.

Copies of the memorandum were released to the media here. He sought the Ministry’s nod to release the second instalment of basic grant of Rs 1,390.04 crore and also the performance grant of Rs 560.15 crore to urban and rural local bodies for the 2017-18 year.

“The urban and rural local bodies are in dire need of funds to carry out their day to day affairs in order to provide basic amenities to its citizens,” he said.

Noting that local bodies have taken up development work and have utilised the first instalment to settle the bills, he said the development works were at the completion stage and required further funds to settle the final bills.

“The non-receipt of basic grant of the Central Finance Commission from the Government of India has led to public hardship and suffering,” he said.

Finance Minister Arun Jaitley

Velumani sought Jaitley’s intervention on the issue and also requested him to instruct the Department of Expenditure, Ministry of Finance to release the second instalment.

He requested him to release the first instalment of the basic grant of Rs 1,608.03 crore for the 2018-19 fiscal.

Recalling the earlier representation to Jaitley, Velumani said the funds were withheld by the centre since elections were not held for local bodies due to legal impediments.

“The elections to local bodies could not be held in the State due to various litigations and also on account of the process of delimitation of territorial wards of local bodies being undertaken by the Tamilnadu Delimitation Commission,” he said.

After completion of delimitation process, the State Election Commission would be in a position to notify the elections to the local bodies, he said.