Happy Centre allows Andhra Pradesh, Uttar Pradesh to borrow Rs 7,106 crore

Chennai: Andhra Pradesh and Uttar Pradesh have been granted permission to raise additional borrowing to the tune of Rs 7,106 crore for successfully implementing some of the reforms prescribed by the Centre during the stimulus package. While Andhra Pradesh has become the first state to implement ‘Ease of doing Business’ reforms after Public Distribution System reforms, Uttar Pradesh became the sixth state to implement One Nation One Ration Card.    

By undertaking Ease of doing Business’ reform, Andhra Pradesh has become eligible to raise an additional amount of Rs 2,525 crore through Open Market Borrowings. The reforms prescribed by the Department for Promotion of Industry and Internal Trade include assessment of ‘District Level Business Reform Action Plan’, elimination of renewal of certificates/ approvals/ licences and computerized central random inspection system.

Earlier, Andhra Pradesh was allowed to borrow another Rs 2,525 crore or 0.25 per cent of its Gross State Domestic Product for successfully implementing One Nation One Ration Card along with Telangana, Goa, Karnataka, and Tripura. All the five states were granted permission to raise additional financial resources of Rs 9,913 crore then.

On Friday, Uttar Pradesh too joined the list of states that have implemented One Nation One Ration Card. This has made the state eligible to raise Rs 4,851 crore through Open Market Borrowings. Under the reform, states have to ensure availability of ration to beneficiaries under the National Food Security Act and other welfare schemes, especially to the migrant workers and their families at any fair price shop in the country.

As part of the stimulus package, the Centre had allowed states an additional borrowing limit of up to two per cent of Gross State Domestic Product for 2020-21. This made Rs 4,27,302 crore available to the states to borrow. However, one per cent of this is subject to implementation of One Nation One Ration Card System, Ease of doing Business, Urban Local body/ utility reforms and power sector reforms.


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