In addition to this, the state has demanded grant of Rs 8,275 crore forimproving urban transport, water supply and sewerage.

Chief minister Vilasrao Deshmukh will make a formal appeal in thisconnection on Thursday at a meeting of the 11th Finance Commission, headedby noted economist AM Khusro, which is visiting the state. The governmenthas said that the grants-in-aids should be made available under Article 275to enable it to bridge the fiscal deficit, narrow disparities and meet thesespecial burdens. Mantralaya sources told The Financial Express that thestate government has expressed concerns over the non-inclusion ofMaharashtra in the list of states which have been recommended grants underArticle 275 by successive Finance Commissions.

Emphasising the need for granting the state grants-in-aid, the governmenthas made it clear that the resources available are simply not enough foroptimising standards and for meeting the challenges confronting the state."It is only through massive central assistance that it will be possible forMaharashtra to make a dent in these problems," the government added.

The state government has called for the redetermination of rate of intereston existing small savings loans so that the Centre does not recover morethan what it is paying to the investors by way of interest plus a nominalcollection charge of around 4 to 5 per cent.