Shillong:
In a bid to bring reforms in the power sector, the Ministry of Finance has granted an incentive of Rs 1,22,551 crore as additional borrowing to Assam, Manipur, Meghalaya Sikkim, Andhra Pradesh, Himachal Pradesh, Odisha, Rajasthan, Tamil Nadu and Uttar Pradesh states for the 2022-23 fiscal.
Based on the recommendations of the Fifteenth Finance Commission, the ministry decided to grant additional borrowing space of up to 0.5 per cent of the Gross State Domestic Product (GSDP) to the states annually for a four-year period from 2021 to 2025.
According to the ministry, these financial incentives have been granted with an aim to improve the operational and economic efficiency of the sector and promote a sustained increase in paid electricity consumption.
The Finance Ministry further stipulated that states that have not completed the required reform process in 2021-22 may avail the benefit of additional borrowing earmarked for the years 2022-23 on the condition that they carry out the reforms in the current financial year.
Earlier, the ministry had already granted additional borrowing permission of Rs 28,204 crore for having undertaken the required reforms in the year 2021-22.