NEW DELHI, June 6 ? Assam Government today formally sought compensation for the deficit grant awarded by the Eleventh Finance Commission (EFC), even as it called for early release of the outstanding Sales Tax dues to the tune of Rs 499.58 crore payable by Indian Oil Corporation (IOC). Accompanied by former Union Finance Minister, Dr Man Mohan Singh, Chief Minister Tarun Gogoi today met Prime Minister, Atal Behari Vajpayee here this evening seeking his intervention in resolving the disputes. The meeting with the Prime Minister was proceeded by a separate meeting with Union Finance Minister, Yashwant Sinha at his North Block Office.
Although Assam Government did not mention any specified amount, it quietly pointed out that the EFC had erred in its estimates of the State?s non-plan revenue deficit which had led to reduced devolution by about Rs 1,000 crore. Chief Minister, had a hectic schedule running from one Central Minister to the other and briefing Dr Singh in between. Early in the afternoon he also called on Minister for Department of Development of North Eastern Region (DONER), Arun Shourie.
?The Government of Assam has been deeply aggrieved by the award of the EFC. We are unable to fathom how the Commission could have awarded a meagre Rs 110.68 as non-plan revenue deficit grant to Assam, one of the financially weakest States in the Union, when all other special category States and even many non-special category States have been awarded substantially larger non-plan revenue grants,? the memorandum submitted to the Prime Minister said.
Assam Government apprised the Prime Minister that a scrutiny of the EFC projections in the case of other special category States and some of the important non-special category States reveals that the Commission?s estimates of ?other non-plan grant? in respect of these States ranged from Rs 20.77 crore to Rs. 299.45 crore over the period 2000-2005. If one were to go by the same yardstick ?other non-plan grant? estimates in the case of Assam appears to have been over estimated by about Rs 1,000 crore over the EFC period. Indeed, this over estimation may have by itself resulted in lower Central devolution, most probably by way of lower non-plan revenue grant, Chief Minister said.
Assam Government was also critical of the IOC saying that it was matter of regret that Assam Government, which is already facing a severe financial crisis has to struggle for the payment of dues payable to it, more so as IOC in spite of being a major PSU associated with Assam for several decades in oil industry, resorted to what can only be termed, in light of the Court?s orders ? as avoidable litigation, Sri Gogoi complained.