A day after the Centre agreed to borrow Rs 1.10 lakh crore on behalf of states for meeting GST shortfall, Finance Minister Nirmala Sitharaman on Friday reached out to all states explaining the contours of the special window. The finance minister’s letter to states comes four days after the GST Council meeting failed to reach a consensus on the stalemate over the Centre’s proposal of states borrowing against future GST collections to make up for the shortfall. “We have now worked out some key aspects of special window. Based on suggestions of many states, it has now been decided that the central government will initially receive the amount and then pass it on back-to-back to the States as loans. This will enable ease of coordination and simplicity in borrowing apart from ensuring favourable interest rate,” the letter accessed by PTI said. Hence, it said, the quantum of resources available for the state is adequate to meet the entire amount of compensation which would have been payable this year. The interest and principal will be met from the future proceeds of the cess.