Karnataka CM Basavaraj Bommai requests Centre to extend GST compensation period

Chief Minister Basavaraj Bommai on Monday met Union Finance Minister Nirmala Sitharaman and requested her to extend the GST compensation period up to 2024-25.

As per the existing system, GST compensation period will end on March 2022. However, state government has been financial crisis due to Covid-19 pandemic. To ease the state's burden, the Centre should extend the compensation period, the CM said.

Emerging out of the meeting, the CM said the Finance Minister responded positively to his plea.

The CM said during his meeting with Union Power Minister R K Singh, he requested him to relax some conditions imposed on electricity distribution companies (Discoms) to availing bank loans.

Since Karnataka is spending Rs 15,000 crore per year for electricity subsidy, the Centre should relax some conditions to clear discoms pending bills by state governments.

Read | 'Karnataka not to compromise in river linking projects'

During his meeting with Railway Minister Ashwini Vaishnaw, the CM requested him to arrange more wagons to supply coal to states.

The CM also held meeting with state MPs and requested them to take up state pending issues at the Centre.

The meeting was also attended by Union Finance Minister Nirmala Sitharaman.

On river linking, the CM said Karnataka should get its rightful share of waters in the inter-linking of rivers.

"Our share should be decided on water accruing in our river basin, our need and equitable share. This is our stand. All the states should be taken into confidence before finalising the Detailed Project Report (DPR) for the project. All measures would be taken to get Karnataka's rightful share of water. As it involves Krishna and Cauvery, the lifelines of our state, we have made our stand clear. There is no compromise on this," he said.

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