Representing Puducherry at a meeting chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer on Friday, PWD Minister K Lakshminarayanan sought increased Normal Central Assistance (NCA) to support the UT's financial stability. Pointing out Puducherry's limited revenue-generating capacity due to its small geographical area, absence of natural resources, and limited scope for additional taxation post-GST implementation, Lakshminarayanan proposed that Puducherry be treated on par with states for revenue sharing, suggesting an amendment to Article 280(3) of the Constitution or a special reference to the 16th Central Finance Commission (CFC). He also advocated for a 10% annual hike in NCA until a formula-based allocation system equivalent to Finance Commission grants is established.The Puducherry government has requested additional funds under the capital head to undertake infrastructure projects worth ₹1,245.37 crore. Key initiatives include the construction of an Integrated Assembly Complex at an estimated cost of ₹600.37 crore.The administration has also approached the Airports Authority of India for a feasibility study on extending the runway eastward, with the estimated cost of land acquisition in Tamil Nadu pegged at ₹500 crore. To bolster infrastructure, Puducherry has proposed capital investment projects worth ₹500 crore for water supply, sanitation, sewerage, and roads under an Externally Aided Project (EAP). Additionally, it plans to utilise a ₹200 crore soft loan from the World Bank for the SHORE program, aimed at strengthening coastal resilience. The UT has also sought relief of ₹614.88 crore to address damages caused by Cyclonic Storm Fengal.

Pondy govt demands additional funds of ₹2,887 cr from centre

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