Modi defends taking loans by Bihar govt from foreign agencies

Patna, Mar 28 (UNI) Bihar Deputy Chief Minister Sushil Kumar Modi today defended the state government decision to take loan from different international funding agencies for carrying out various welfare and development projects in the state.

While replying to general debate on budget for the fiscal 2008-09 in the state Legislative Council, Mr Modi said the international funding agencies were extending loans to the Bihar government on low interest and it was payable in long period.

'' Under the Constitutional provision, no state can take loan from the foreign agencies without the requisite permission from the Centre, '' he said adding the Bihar government was taking loans with consent from the Centre and as such any criticism in this regard was baseless.

Citing related figures, Mr Modi said the state government had taken loans to the tune of Rs 49,000 crore, while Maharashtra and West Bengal had taken loans of Rs 1.61 lakh crore and 1.22 lakh crore respectively.

Several other state like Madhya Pradesh and Kerala had taken loans more than what the Bihar government had taken so far.

'' The loan taken by the Bihar government is within the ceiling, set by the Centre to take advanage of loan waiving by the Union government, '' he pointed out.

Later, the House also passed the Bihar Appropriation Bill-2008 and Bihar Finance Bill-2008 by voice vote.

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