Additional Resources Of Rs 7,309 Crore Made Available To States To Undertake Power Sector Reforms

New Delhi, January 29 (TNA) Department of Expenditure, Ministry of Finance has granted additional borrowing permission of Rs. 7,309 crore to two States for undertaking the stipulated reforms in power sector, an official said. While, Rajasthan has been allowed to borrow additional Rs. 5,186 crore, Andhra Pradesh has been allowed to borrow additional Rs. 2,123 crore as incentive to embark on the reform process.

Ministry of Finance, based on the recommendations of the Fifteenth Finance Commission, has decided to grant additional borrowing space of upto 0.5 percent of the Gross State Domestic Product (GSDP) to the States every year for a four year period from 2021-22 to 2024-25 based on reform undertaken by the States in the power sector.

Progressive assumption of responsibility for losses of public sector distribution companies (DISCOMs) by the State Government. Transparency in the reporting of financial affairs of power sector including payment of subsidies and recording of liabilities of Governments to DISCOMs and of DISCOMs to others.

The Ministry of Power is the nodal Ministry for assessment of performance of States and determining their eligibility for granting additional borrowing permission.

Apart from Rajasthan and Andhra Pradesh, nine other States, namely Assam, Goa, Kerala, Manipur, Meghalaya, Odisha, Sikkim, Tamil Nadu and Uttar Pradesh have also submitted their proposals to the Ministry of Power, which are under examination. Additional borrowing permission will be issued to eligible States on receipt of recommendation from the Ministry of Power.