FM Nirmala Sitharaman to interact with CMs of states, UTs on Nov 15, will discuss capex, big-ticket infra projects

Finance Minister Nirmala Sitharaman

Finance Secretary TV Somanathan said on November 12 that Finance Minister Nirmala Sitharaman will interact with CMs of states and union territories (UTs) on Monday afternoon (November 15). The meeting will be on economic recovery so far, capital expenditure, and big-ticket infra projects. The conference will be held virtually from 3 PM to 6 PM on November 15, Moneycontrol had reported earlier.

Addressing the media, Somanathan said there is a lot of positive sentiment from global investors regarding investment in infrastructure. This should be capitalised upon. However, he said that several things needed to place India on a higher growth path, lie in the hands of the states.

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"Joint action by centre and states will put India on a higher growth path. We hope each state will have a clearer appreciation and picture on the state-specific issues," Somanathan said.

The upcoming discussions between FM Sitharaman and states' CMs will tie-up with the centre's GatiShakti Initiative. It was launched by Prime Minister Narendra Modi on October 14 for multi-modal connectivity in a bid to bring India's infrastructure development on a common path. The prime minister's office had said the GatiShakti project will break departmental silos and institutionalise holistic planning for the stakeholders across major infrastructure projects.

Speaking to the media, Economic Affairs Secretary Ajay Seth said a lot of issues and clearances on infra projects require state cooperation. Several states have their own industrial policy. The interaction will not only be about what the government can put into the economy but also facilitate private investment. Adding more, he said several states have set up databases of land banks.

Among other things, Finance Secretary Somanathan said seven states have met and claimed additional borrowing in the first half of the fiscal year 2021-22. States like Chhattisgarh, Kerala, Madhya Pradesh, Punjab, Rajasthan, Telangana, and Meghalaya have sought an additional borrowing worth 16,691 crore, in lieu of capital expenditure.

Earlier on November 10, Union Department of Economic Affairs Secretary Ajay Seth -- in a corresponding letter to the Chief Secretaries -- sought inputs from the states to pave the way forward to ensure fiscal sustenance.