Center extends financial incentives to 12 states to accelerate power sector reforms
Tags: Economy/Finance National News
Centre has provided financial incentives to 12 states to accelerate power sector reforms. These states will receive over 66 thousand crore rupees incentives for reforms in the power sector.
An overview of the news
This initiative aims to support and motivate states in implementing reforms that enhance the efficiency and performance of the power sector.
The announcement regarding this initiative was made in the Union Budget 2021-22 by the Union Finance Minister.
As part of the initiative, states are granted an additional borrowing space of up to 0.5 percent of their Gross State Domestic Product (GSDP) annually for a period of four years, from 2021-22 to 2024-25.
Based on the recommendations of the Ministry of Power, the Ministry of Finance has granted permission for the reforms undertaken by 12 state governments in the years 2021-22 and 2022-23.
As a result, these states have been allowed to raise financial resources of Rs 66,413 crore through the additional borrowing permissions over the past two financial years.
Each State as an incentive to embark on the reform process is as follows:
SL No. | State | Cumulative amount (Rs in crore) |
1. | Andhra Pradesh | 9,574 |
2. | Assam | 4,359 |
3. | Himachal Pradesh | 251 |
4. | Kerala | 8,323 |
5. | Manipur | 180 |
6. | Meghalaya | 192 |
7. | Odisha | 2,725 |
8. | Rajasthan | 11,308 |
9. | Sikkim | 361 |
10. | Tamil Nadu | 7,054 |
11. | Uttar Pradesh | 6,823 |
12. | West Bengal | 15,263 |
Total | 66,413 |
Please Rate this article, so that we can improve the quality for you -
