Puducherry: CPI's Puducherry unit on Wednesday urged the Prime Minister Manmohan Singh to write off the accumulated loan of Rs 2700 crore due from the union territory over the years to the Centre as it was facing "financial cruch now."

Secretary of the party state committee R Viswanathan told reporters that a memorandum in this regard had been presented to the Prime Minister during his visit to Puducherry last week.

"Cheques issued to sugarcane farmers by the cooperative sugar mill had bounced for want of funds. Employees in the Puducherry government run public sector undertakings were yet to get their wages for over six months. This manifests the awful financial condition of the government here", he said.

The party also demanded a special package of Rs 3000 crore for the Union Territory for development in power, tourism and textile sectors.

The party also wanted an amendment to the Article 264 of the Constitution for equal status with other states and treats the Union Territory as equivalent to a state.

(Agencies)

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