ADB loan as Govt couldn't mobilise revenue from open market: Issac

Thiruvananthapuram, Mar 10 (UNI) The Kerala government had to avail a loan from the Asian Development Bank (ADB) for urban development as it could not mobilise revenue from the open market, Finance Minister Thomas Issac said.

''As the government could not mobilise Rs 1,200 crore from the open market, we had to go for a loan from the ADB,'' he said at a meet-the-press- programme at the Thiruvananthapuram Press Club here.

Noting that the Centre had shortened the borrowing limit of the state, he said Kerala had intended to go for Rs 7,500 crore loan from different agencies. But the Centre had limited the borrowings to Rs 4,500 crore. It was only after talks with the Planning Commission that the state was able to go for Rs 7,200 crore loan, he said.

Asked about the rationale in going for ADB loan after the Left had fought against it when the United Democratic Front was in power, Mr Issac said the LDF had protested against foreign aid for the Modernisation of Government Programmes during the UDF rule as it contained some clauses that were detrimental to the state.

After the LDF agitation, the UDF had to go in for changes. The protest against the ADB was also in this context that the agreements should not be detrimental to the state, he said.

On imposition of four per cent tax on life saving drugs, the Minister said it would not increase the prices and adversely affect the people.

The revenue of Rs eight crore generated from the additional tax would be utilised for purchasing medicines in the government hospitals, he said and warned that strict action would be taken against those, who sold life saving drugs above the MRP.

Pointing out that there was a need to expedite the economic growth, he said the state had to look for mobilising resources.

UNI