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BJD wants rejig in cost sharing formula

Updated: August 6th, 2021, 22:04 IST
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New Delhi: Biju Janata Dal (BJD) MP Sasmit Patra Friday reiterated the long-standing demand of Odisha for Special Focus State status in Rajya Sabha citing its vulnerability to natural calamities. The regional party demanded revision of the cost sharing pattern for implementation of central schemes.

Speaking during the Zero Hour, the BJD MP claimed that Odisha has been facing natural disasters on a regular basis. Cyclones and floods hit Odisha regularly and adversely affect the economy of the coastal state, Patra said.
Through this Special Focus State status, the cost sharing formula for the central government schemes between the Centre and Odisha should be changed for a period of three years from the date of the occurrence of a natural disaster in the state, he added.

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“The cost sharing pattern should change from the present 60:40 to 90:10 between the Centre and Odisha. The central government schemes have a cost sharing pattern of 60:40 in which 60 per cent funds are provided by Centre and the balance 40 per cent is provided by the state. If the administrative costs of the state for implementing such programmes are added, the ratio comes to 50:50 between the Centre and the state,” Patra pointed out.

The cost sharing pattern for central schemes should be changed to 90:10, where the Centre would provide 90 per cent of the funds and the state will arrange the balance 10 per cent for a period of three years from the date of occurrence of a natural disaster. This will expedite infrastructural development and rebuilding of the affected regions of the state.

He also informed the Upper House that the demand for Special Focus State status has been raised by Chief Minister Naveen Patnaik before the Centre on various occasions.

The BJD MP also highlighted various issues related to development of KBK region comprising undivided districts of Kalahandi, Bolangir and Koraput where there is a need for raising banking density, tele density and internet connectivity. All these regions also need additional support and assistance from the Centre, Patra argued.

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