Centre allows 9 States to raise Rs 23,523 cr

New Delhi: The Centre has granted permission of reform-linked borrowing worth Rs 23,523 crore to nine states. A Finance Ministry statement said that so far nine states have successfully completed reforms in PDS and implemented One Nation One Ration System - Andhra Pradesh, Goa, Haryana, Karnataka, Kerala, Telangana, Tripura and Uttar Pradesh.

"On completion of reforms, additional borrowing permission of Rs 23,523 crore has been issued to them," it said. In view of the challenges posed by the Covid-19 pandemic for mobilisation of financial resources, the Government of India has taken multiple measures to avail funds to states. These include grant of additional borrowing permission of 2 per cent of the GSDP in the year 2020-21.

In addition to the One Nation One Ration Card, other reforms specified as a precondition to avail additional borrowing are ease of doing business reform, urban local body or utility reforms and power sector reforms.