Chennai: Tamil Nadu Chief Minister Jayalalithaa on April 17 requested Prime Minister A B Vajpayee to rescind the limitations imposed on the state governments' borrowing capacities in the larger interests of people.

In a letter to Vajpayee, she said the "blanket" restrictions on state government' powers to borrow for the developmental programmes, at a time of severe financial crunch, would further limit the ability of the states to implement the developmental programmes.

State governments were in closer and direct touch with the people and were more accountable to them than the Centre, she said.

Tamil Nadu had a favourable debt profile and it needed to be encouraged to show a better plan performance, she said.

"It is time the Union government assumed the role of a positive federator, encouraging the state government to do even better for the development and welfare of the people. I request you to rescind the limitations imposed on the borrowing capacities of the state governments," she said.

PTI