Lok Sabha Question No. 398 (STARRED), answered on 2016-08-12
Subject: Loans to States
Ministry: FINANCE
Asked by: C.S. PUTTARAJU

FINANCE MINISTER (SHRI ARUN JAITLEY)

(a) to (c): A statement is laid on the table of the House.

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE PLAN FINANCE-I DIVISION

## LOK SABHA STARRED QUESTION NO. 398 TO BE ANSWERED ON FRIDAY, 12 th  AUGUST, 2016/ 21SRAVANA, SAKA 1938

## Loans to States

## *398.  SHRI C.S. PUTTA RAJU:

Will the Minister of FINANCE be pleased to state:

- (a) the quantum of loans disbursed bythe Union Government to the States along with  the  outstanding  liabilities  of  the  Statesduring  the  last  three  years, State/UT-wise;
- (b) whether  the  Union  Government  isaware  of  certain  misuse  of  the  loans  by theStates during the said period and if so, thedetails thereof;and
- (c) the corrective action taken by theGovernment in this regard?

## ANSWER

## Statement referred to in reply to part (a) to (c) of LokSabha Starred question no. 398 due for answer on 12.08.2016

- (a) The  details  of  loans  advanced  by  the  Central  Government  to  States/ UTs,during  last  three  years  from  2013-14  to  2015-16  alongwith  the  outstanding amount as at the end of 2015-16 are at Annex-I.
- (b) & (c) Certain misuse/ allegations with respect to in-eligible expenditure, procurement  and  fraudulent  practices  were  reported.  These  instances  pertain  to theWorld  Bank  financed  Projects  of  -  Emergency  Tsunami  Reconstruction  Project (ETRP);Maharashtra Water Sector Improvement Project (MWSIP); Andhra Pradesh & Telangana Road Sector Project; Punjab Rural Water Supply & Sanitation Project (PRWSSP)and Odisha  State  Road  Project.Expenditure  found  in-eligible  by  C&AG under  ETRP  has  sincebeen  refunded.  State  Government  has  lodged  FIR  against defaulting company for submitting false Bank Guarantees in another project(MWSIP).

The loans from Multilateral Development Banks are passed to the State Governments  on  back  to  back  basis  for  the  socio-economic  development  of  the State.  The  output  of  agreed  project  components  and  deliverables are  well  defined and  are  regularly  monitored  through  Tripartite  Review  Meeting  and  State  Review Meeting. Further, C&AG conducts audit of State expenditure and the audit report is placed before the State Legislature.

.

## Annex I to reply to part (a) of Lok Sabha starred question No. 398 for 12.08.2016

| S.No                      |                           | State-wise amount of Loans advanced during the years#   | State-wise amount of Loans advanced during the years#   | State-wise amount of Loans advanced during the years#      | Outstanding Balance of Central Govt. loans at the end of the 2015-16   |
|---------------------------|---------------------------|---------------------------------------------------------|---------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------------------|
| S.No                      | Name of the States        | Loans Advanced during 2013-14                           | Loans Advanced during 2014-15                           | Loans Advanced during 2015-16 (Provisional and Un-audited) | Outstanding Balance of Central Govt. loans at the end of the 2015-16   |
| 1                         | Andhra Pradesh            | 1,343.70                                                | 695.41                                                  | 685.17                                                     | 9,603.46                                                               |
| 2                         | Arunachal Pradesh         | -                                                       | -                                                       | -                                                          | 214.51                                                                 |
| 3                         | Assam                     | 48.61                                                   | 49.66                                                   | 50.49                                                      | 1,314.22                                                               |
| 4                         | Bihar                     | 549.66                                                  | 718.25                                                  | 822.97                                                     | 8,827.47                                                               |
| 5                         | Chattisgarh               | 14.59                                                   | 8.44                                                    | 145.03                                                     | 1,844.17                                                               |
| 6                         | Goa                       | 150.37                                                  | 202.88                                                  | 111.56                                                     | 1,011.11                                                               |
| 7                         | Gujrat                    | 161.02                                                  | 323.39                                                  | 252.56                                                     | 7,036.08                                                               |
| 8                         | Haryana                   | 337.72                                                  | 130.76                                                  | 97.24                                                      | 2,196.88                                                               |
| 9                         | Himachal Pradesh          | 59.25                                                   | 125.31                                                  | 59.31                                                      | 1,044.07                                                               |
| 10                        | Jammu & Kashmir           | 15.28                                                   | 12.15                                                   | 17.21                                                      | 1,201.86                                                               |
| 11                        | Jharkhand                 | 106.15                                                  | 138.83                                                  | 150.91                                                     | 2,072.35                                                               |
| 12                        | Karnataka                 | 1,158.71                                                | 1,365.20                                                | 1,271.02                                                   | 12,969.53                                                              |
| 13                        | Kerala                    | 392.02                                                  | 752.47                                                  | 531.35                                                     | 7,213.49                                                               |
| 14                        | Madhya Pradesh            | 1,212.44                                                | 1,372.23                                                | 1,326.12                                                   | 13,626.97                                                              |
| 15                        | Maharashtra               | 919.62                                                  | 587.12                                                  | 575.97                                                     | 8,155.56                                                               |
| 16                        | Manipur                   | -                                                       | -                                                       | -                                                          | 382.02                                                                 |
| 17                        | Meghalaya                 | 0.80                                                    | 4.77                                                    | 2.28                                                       | 191.77                                                                 |
| 18                        | Mizoram                   | 1.03                                                    | 19.39                                                   | 3.80                                                       | 234.14                                                                 |
| 19                        | Nagaland                  | -                                                       | 5.43                                                    | 0.14                                                       | 154.58                                                                 |
| 20                        | Odisha                    | 578.51                                                  | 529.10                                                  | 739.43                                                     | 7,197.97                                                               |
| 21                        | Punjab                    | 377.86                                                  | 561.92                                                  | 265.33                                                     | 3,531.30                                                               |
| 22                        | Rajasthan                 | 409.75                                                  | 794.11                                                  | 1,749.12                                                   | 8,209.23                                                               |
| 23                        | Sikkim                    | 1.58                                                    | 10.71                                                   | 3.09                                                       | 108.99                                                                 |
| 24                        | Tamil Nadu                | 2,011.34                                                | 1,517.09                                                | 920.88                                                     | 7,496.17                                                               |
| 25                        | Telangana*                | -                                                       | 86.37                                                   | 1,367.37                                                   | 13,329.26                                                              |
| 26                        | Tripura                   | 4.93                                                    | 18.80                                                   | 5.93                                                       | 249.60                                                                 |
| 27                        | Uttarakhand               | 34.96                                                   | 61.00                                                   | 593.86                                                     | 538.62                                                                 |
| 28                        | Uttar Pradesh             | 389.90                                                  | 485.98                                                  | 97.01                                                      | 13,565.60                                                              |
| 29                        | West Bengal               | 729.02                                                  | 1,362.99                                                | 658.95                                                     | 13,443.28                                                              |
|                           | Total (States)            | 11,008.82                                               | 11,939.76                                               | 12,504.10                                                  | 1,46,964.27                                                            |
|                           | UT's                      |                                                         |                                                         |                                                            |                                                                        |
| 1                         | Delhi                     | -                                                       |                                                         |                                                            |                                                                        |
| 2                         | Pudducherry               | 81.96                                                   | 72.00                                                   | 72.00                                                      | NA                                                                     |
|                           | Total(UTs)                | 81.96                                                   | 72.00                                                   | 72.00                                                      | NA                                                                     |
| Grand Total (States/ UTs) | Grand Total (States/ UTs) | 11,090.78                                               | 12,011.76                                               | 12,576.10                                                  |                                                                        |