Demonetization To Cost Telangana Rs. 3,000 Cr By Dec

Telangana Chief Secretary Rajiv Sharma today informed the Central team that arrived in Telangana recently to estimate the total loss incurred on it due to the effects of the demonetization of the Rs. 500 and Rs. 1,000 currency bills, that the State would have had suffer an estimated revenue loss of Rs. 3,000 crores by the end of the 2016 due to the move.

The Chief Secretary held a review meeting along with bank officials and the Central team led by Additional Secretary to the Central government Sri Reddy Subramanyam.

Sharma apprised him of the implications of invalidating the two notes, including rise in unemployment, losses in real estate sector, and losses to farmers and small businesses.

He urged the team to take steps to release the CST, to allow the use of old notes at Markfed and government agencies, to allow payment of loan arrears till November 24, to give Rs. 10,000 each to the government employees, to release the new Rs. 500 notes to the State, cities, towns and villages, and also help ASRA pensioners get their money. He also urged them to permit people to deposit and exchange the old notes at post offices and allot adequate new notes to the State.

Later, Subramanyam said that they visited several places in Telangana to check the actual effects of the ban. "We will submit a report to the Centre on the steps to help the State government overcome its losses," he said.