November 2, 2020 8:51 PM

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Center to release Rs. 6,000 crore as 2nd tranche to 16 States, 3 UTs for meeting GST Compensation Cess shortfall

<span style="color: #222222;">The Ministry of Finance will be releasing an amount of Rs. 6,000 crore as second tranche to 16 States and three Union Territories today under its Special Window to States for meeting the GST Compensation Cess shortfall.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">This amount was raised at a weighted average yield of 4.42 per cent.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">This amount will be passed on to the States and Union Territories at the same interest rate, which is lower than the cost of borrowings for the states.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">Ministry of Finance has facilitated loans of 12,000 crore rupees till date under the Special Window to States and UTs.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">According to the Ministry of Finance, 21 States and three Union Territories till date, have opted for the Special Window under Option-I.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">The loans raised by the Central Government are released on a back-to-back basis to States and UTs in lieu of GST Compensation Cess releases.</span><br />'' <span style="color: #222222;"> </span><br />'' <span style="color: #222222;">The loans have been released to the States and Union Territories including Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Haryana, Uttarakhand and Delhi.</span><br />''  

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