Spl states to get external aid in loan ratio of 90:10

New Delhi, Dec 21 (UNI) In a decision that would reduce the debt liability of special category states, the Union Cabinet today gave approval for returning to the previous system of passing external assistance to such states in the grant/loan ration of 90:10 as opposed to release on 'back to back' basis recommended by the 12th Finance Commission.

The decision will take effect from April one 2004, Union Finance Minister P Chidambaram told mediaperosns here after the Cabinet meeting.

Since one special category state Himachal Pradesh has received external assistance on a back to back basis from April one 2005, it would benefit as the loan of Rs 22.15 Crore would be converted into grant/loan ratio of 90:10.

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