Chennai/New Delhi, Jun 21 (IANS): Tamil Nadu Deputy Chief Minister O. Panneerselvam on Friday asked the Central government to sanction Rs 1,000 crore to his state to augment irrigation structures in drought-prone areas like the one extended to Maharashtra.

Panneerselvam, who also holds the finance portfolio, was speaking at the pre-budget meeting of state Finance Ministers chaired by Union Finance Minister Nirmala Sitharaman in New Delhi.

He requested the Central government to extend special package assistance of Rs 1,000 crore under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) to augment irrigation structures in drought-prone areas to address agrarian distress and drinking water crisis, similar to the allocation made to Maharashtra.

Panneerselvam also urged the Central government to allocate funds for the Rs 17,600 crore project for modernising Grand Anicut canal system.

He also reiterated the state's request for Rs 6,000 crore for building two lakh additional climate-resilient houses damaged by Gaja cyclone and requested the same to the included in the Union Finance Minister's budget speech.

Continuing his request for central funds, Panneerselvam urged a special ad hoc grant of Rs 2,000 crore per annum till the 15th Finance Commission recommendations are implemented, claiming Tamil Nadu was adversely affected by the 14th Finance Commission recommendations and was deprived of Rs 6,000 crore annually due to change in devolution criteria.

He also cited the estimated arrears of Rs 4,458 crore under the Integrated Goods and Service Tax (IGST) for 2017-18 and suggested that it be settled on rolling basis by taking the closing balance of the previous year as the opening balance of the next year, so that the outstanding amount is duly settled to the states in a transparent manner.