Finance crunch in Orissa deepens as ministers wrangle

BHUBANESWAR, JUNE 29: The state government's bid to generate additional resources to tide over the financial crisis in the state has run ...

BHUBANESWAR, JUNE 29: The state government8217;s bid to generate additional resources to tide over the financial crisis in the state has run into rough weather due to differences among the council of ministers.

The differences were spelled out at the meeting of the council of ministers on Tuesday, presided over by Chief Minister Giridhar Gamang. As a result, a cabinet sub-committee was formed examine details of the additional resource mobilisation exercise.

The cabinet sub-committee on resource mobilisation will be headed by Finance Minister Raghunath Patnaik. Other members of the sub-committee include Energy Minister Niranjan Patnaik, Water Resources Minister Basant Kumar Biswal, Public Enterprises Minister Durgashankar Patnaik and Minister of State for Excise Suresh Kumar Routray.

Proposals include further disinvestment of shares from state-owned Orissa Power Grid Corporation OPGC, introduction of entry and professional taxes, excise policy approval and rationalisation of the sales tax structure.

However, the proposals came in for flak from several ministers prompting the CM to set up a cabinet sub-committee, which will submit its report within the next 15 days. As the state government is scheduled to place its budget for 1999-2000 in the Assembly on July 2, the proposals to generate additional resources cannot be announced by the finance minister in his budget speech.

Privatisation of distribution of power has also become a non-starter as the state cabinet sub-committee is yet to submit its report. Three out of the four distribution companies floated by the government had already been privatised by the time the cabinet decided to form the sub-committee. Only the Central Electricity Supply Company CESCO had not been privatised.

The council of ministers decided to amend the act governing the pension and other allowances of the MLAs. Existing provisions allow former MLAs to draw pension if they were members of the Assembly for a minimum period of two years. In the amended version, the provision will be relaxed to one year. Pension amount of the MLAs will also be raised from existing Rs 700 to Rs 2000 per month.

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The council of ministers also decided to reserve 33 per cent of the government jobs for women. The appointments of Hadibandhu Mirdha and HS Sarkar as the chairman and member of the Orissa Public Service Commission OPSC were approved.

The meeting approved government proposals to set up the Fakir Mohan university at Balasore, the North Orissa University at Baripada and the Culture university at Bhubaneswar. Decision was made to set up the institute of mathematics and application in Bhubaneswar.