Tamil Nadu may reiterate its demand for a Rs 9,000 crore relief package, when state chief minister K Palaniswami interacts with Prime Minister over video-conferencing, according to sources in the government. The state has been requesting for the sum to revive its industries in the aftermath of the COVID-19 lockdown across the country.
Of the sum, the state has said it plans to allocate Rs 1,000 crore towards improving medical infrastructure in the state, including the purchase of PPE suits for medical staff. The state government has also requested the Centre to allow for a six-month deferment of payment of GST by smaller companies across Tamil Nadu.
In late April, Chief Minister Palaniswami wrote to Prime Minister Modi requesting for a bailout of the state’s distribution companies, especially the Tamil Nadu Generation and Distribution Company (TANGEDCO), which had suffered an acute fall in revenues in the aftermath of the lockdown and the subsequent drop in demand for power.
In a letter, the chief minister said that if a bailout package did not come through, TANGEDO would not be in a position to continue supplying power to consumers.
Tamil Nadu is unlikely to request for an extension in the nationwide lockdown, which is scheduled to conclude on May 17, despite the state’s tally of COVID-19 cases numbering 7,200. Manufacturing units outside Chennai are currently operating with 50 percent of their workforce, while standalone stores in Chennai have been allowed to re-open.
First Published:May 11, 2020 4:38 PM IST