The Chief Minister Harish Rawat welcomed the Prime Minister Narendra Modi at GTC helipad on Tuesday and handed over a memorandum to him. In the memorandum the CM highlighted the loss incurred to the state by the demonetisation decision.
In the memo the CM stated that Uttarakhand is a small state and economy this environmentally sensitive state is dependent on tourism and related industries. He said that the state is reeling under acute shortage of currency notes due to which long queues outside the banks and ATMs are witnessed and immediate intervention is needed to ensure supply of sufficient currency in the state.
He said that the farmers are paying the price of government’s decision of not allowing deposition of old currency notes of Rs 500 and 1000 denomination in the cooperative banks.
The sowing for Rabi season has started but the farmers are devoid of money to purchase seeds and fertilizers. Rawat raised the apprehension that the Rabi crop would be adversely affected by demonetisation due to which the income of farmers would get lowered. Raising the demand of waiver of loan of farmers for the months of November and December said that the farmers are not in a position to pay loan installment due to cash crisis.
The Chief Minister further claimed that the cash crisis has resulted in 50 percent decrease in sale and purchase of general goods, services and properties. The commercial transaction is affected by cash shortage and tendency of people to keep the currency with them. The CM said that the crisis of cash has resulted in decline in revenue, VAT collection, stamp duty, excise and registration fee. He said that the since union government would get many benefit by higher direct and indirect taxes due to demonetisation decision, it should share them with the state governments.
The Chief Minister also handed over a memorandum on expected monetary help from the Union government. In the memo, he said that the change in financial transaction policy has adversely affected the economy of the state and union finance minister has acknowledged that the state has incurred a loss of Rs 1700 crore in the process.
He said that the state is yet to receive the full financial help as envisaged in the disaster reconstruction package. Rawat said that the budget of NRDWP has been slashed by 50 percent. Swajal project is discontinued. The DPR of 12 projects under Namami Gange programme and NMCG are yet to be approved. The CM also requested the PM to clear 300 MW lakhwad and 660 MW Kisau project. He said on the lines of Western Ghats, the clearance for setting up small power plants (up to 25 MW) should be given in eco sensitive zones.
On disaster rehabilitation, Rawat said that 352 villages are needed to be shifted to safe places and a sum of Rs 13000 crore should be provided to the state government for it. The CM also sought help for setting up headquarter of SDRF, Doppler radar, sports infrastructure, tourism and improving transport facilities in the state.
He said the state be handed over sum of Rs 4000 Crore annually for its environmental contribution.