Intense drive on to increase cashless transactions: Naidu

Tirupati: The State government has launched an intense drive to increase cashless transaction to 25 per cent of overall economic activity in the State, and with regard to debit--credit card holders, to 35 per cent, to overcome the cash crunch, said Chief Minister N Chandrababu Naidu.

Speaking to media here on Friday evening after an official review on Indian Science Congress (ISC) arrangements, the Chief Minister admitted that despite passing of 40 days after demonetisation, the difficulties of people were persisting as the measures by Centre to ease the problem had failed to achieve the desire objective due to loopholes in the system.

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Highlights:

• States the government is aiming to raise digital cash transactions to 25% to tide over current cash crunch
• Blames loopholes in banking system for the failure of Central government’s steps to replenish withdrawn notes
• Says government is taking several steps to protect vulnerable sections of society like NREGS
  labourers, farmers and pensioners from not ban fallout

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He said that the loopholes, mainly in the banking system, which came to the fore with seizure of cash in huge quantity from various places, were the main reason for the failure of steps by the Centre.

In the same breath, Naidu asserted that the demonetisation was going to be much beneficial in the long-run though it was causing problems now and added that the only option to mitigate the people’s problem was to promote cashless transaction.

“We are adopting a three-pronged approach, including promoting transaction through debit--credit cards, phones and also ensuring cash with equal importance as long-term solution to end the shortage of cash,’’ he said..

Against this backdrop, Naidu said the government had initiated several measures to help vulnerable sections like NREGS beneficiaries, dairy farmers, social security pensioners and farmers to enable them to pay cash to labour engaged in agriculture.

The Chief Minister said despite difficulties the State registered an impressive 24 per cent growth rate in agriculture as against 3 per cent at national average and witnessed bumper crops in the kharif. In Srikakulam, the paddy yield was 35 bags per acre, the highest as against the normal yield of 15 bags in the district, he said.

Hosting ISC would give a big push to development of Sri Venkateswara University and improve facilities and beautification of the pilgrim city, he asserted and said as an alumnus of the university he would never forget it and would do his best for SVU to become a world-class centre of excellence.

About the works for the ISC meet, the Chief Minister said in all about Rs 170 crore would be spent for additional facilities, improving existing facilities, basic infrastructure like roads, electrification and beautification of the entire city and all along the route from airport to the city, involving TTD, Tuda,

Municipal Corporation, National Highway Authority of India, R and B, PR department, etc., and also for the conduct of the five-day meet to be attended by about 12,000 delegates, including 300 foreign scientists and Nobel laureates.

“I have already reviewed twice the arrangements being made and set the deadline for completing the works by December 26 after which I will personally inspect the arrangements,’’ he said, informing that he was visiting Delhi in the last week of this month to invite Prime Minister Narendra Modi to inaugurate the ISC meeting onJanuary 3.

He said foundation for a planetarium with seven domes resembling the holy hills of Tirumala and national science museum would also be laid as mark of remembrance of ISC meet.

SV University vice chancellor A Damodaram, ISC general president D Narayana Rao and others were present.