Maharashtra to raise funds via Government bodies’ FDs

THE ASIAN AGE. | SHRUTI GANAPATYE

Published : Mar 10, 2017, 3:21 am IST

Updated : Mar 10, 2017, 7:16 am IST

According to the government, various government bodies like MMRDA, Cidco and MIDC have fixed deposits worth Rs 85,000 to Rs 90,000 crore.

Mumbai: Finding it difficult to raise funds for developmental work, the Maharashtra government has asked all government bodies to contribute funds via their fixed deposits. According to the government, various government bodies like Mumbai Metropolitan Region Development Authority (MMRDA), City and Industrial Development Corporation (Cidco) and Maharashtra Industrial Development Corporation have fixed deposits worth Rs 85,000 to Rs 90,000 crore. The bodies have opposed having to break their fixed deposits but finance minister Sudhir Mungantiwar is keen to get some funds from them.

After tapping various sources for fundraising, the finance department has realised that many government bodies have fixed deposits, which can be used for development works.

“We need funds for various works. The government bodies have fixed deposits and some of it can be raised for the development works. It would be on the lines of Non Banking Financial Institutes (NBFI). If we want development, we need to tap various sources of fundraising,” Mr Mungantiwar told The Asian Age. The finance minister wants to use the funds for irrigation, road, tourism and infrastructure projects.

Of the fixed deposits, about Rs 15,000 crore is with MMRDA, Rs 5,000 crore with MIDC and Rs 3,500 with the construction board. However, the government bodies are not keen to give their deposits for fundraising.

Keen on getting the funds, Mr Mungantiwar has spoken to chief minister Devendra Fadnavis who has agreed to help. “It is true that the government bodies were not keen on breaking their deposits. But I have spoken to the chief minister and he has agreed to help,” Mr Mungantiwar said.

The funds, if raised, could reduce the debt on the government, according to the finance department. The state at present is reeling under debt of about Rs 3,00,000 crore and the state borrowing has gone up to Rs 97,350 crore and the interest payment is also about Rs 27,000 crore. The finance minister said that his emphasis in on bringing down loan percentage to get some relief.