Centre releases Rs 6,000 crore as second tranche to 16 States, 3 UTs as GST compensation
New Delhi, November 2, 2020
The Union Ministry of Finance said it would be releasing an amount of Rs 6,000 crore as second tranche to 16 States and three Union Territories (UTs) under its “Special Window to States for meeting the GST Compensation Cess Shortfall".
This amount was raised at a weighted average yield of 4.42 per cent and would be passed on to the States/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs, thus benefitting them, an official press release said.
The Ministry of Finance has facilitated loans of Rs 12,000 crore till date under the Special Window to States and UTs, it said.
As many as 21 States and 3 UTs have so far for the Special Window under Option I. The loans raised by the Government of India (GOI) are released on a back-to-back basis to States/UTs, in lieu of GST Compensation Cess releases.
The loans have been released to the following States and Union Territories: Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Tamil Nadu, Tripura, Uttar Pradesh, Uttarakhand, Delhi, Jammu and Kashmir and Puducherry.