Centre releases Rs 6,000 cr as second tranche of GST compensation to 16 states, 3 UTs

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Ministry of Finance facilitates loans of Rs 12,000 cr till date under the special window to states/UTs

The Ministry of Finance under its “special window to states for meeting the GST compensation cess shortfall,” will be releasing Rs 6,000 crore as second tranche to 16 states and 3 Union Territories on Monday.

This amount was raised at a weighted average yield of 4.42 percent, said the Finance Ministry.

“This amount will 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,” said the ministry. 

Ministry of Finance has facilitated loans of Rs 12,000 crore till date under the special window to states and the UTs.

As many as 21 states and 3 Union Territories till date have opted for the special window under Option I. The loans raised by the Centre 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, UT of Delhi, UT of Jammu and Kashmir and UT of Puducherry.

Image credit: The Hindu Business Line

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