The finance ministry on Thursday stated 10 states got the permission to borrow a further Rs 28,204 crore in FY22 for enterprise energy sector reforms. The 10 states are Andhra Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Odisha, Rajasthan, Sikkim, Tamil Nadu and Uttar Pradesh.
“Division of Expenditure, Ministry of Finance, has granted extra borrowing permission of Rs 28,204 crore to 10 states for enterprise the stipulated reforms in energy sector in 2021-22,” it stated in an announcement.
Within the monetary yr 2022-23 too, the states can avail the power of extra borrowing linked to reforms in energy sector. An quantity of Rs 1,22,551 crore shall be out there as incentive to the states for enterprise these reforms in 2022-23, it added.
The finance ministry, primarily based on the suggestions of 15th Finance Fee, had determined to grant extra borrowing house of upto 0.5 per cent of the Gross State Home Product (GSDP) to the states yearly for a 4 yr interval from 2021-22 to 2024-25 primarily based on the reforms undertaken by them within the energy sector.
The target of granting monetary incentives as extra borrowing permissions for taking over reforms in energy sector are to enhance the operational and financial effectivity of the sector, and promote a sustained improve in paid electrical energy consumption.