Power reforms: States can borrow Rs 1.1 lakh crore extra in FY22
Finance minister Nirmala Sitharaman said on Monday that states have been allowed Rs 1,05,864 crore of additional borrowing in FY22 as a part of the credit leeway announced in May 2020. “States have already been allowed additional borrowing for four years (starting FY22) up to 0.5% of GSDP annually subject to carrying out specified power sector reforms,” the finance minister said.
States have been asked to take steps to improve the discoms’ corporate governance and increase intervention of IT-enabled infrastructure to lower pilferage in power supply to avail a part of the increased net borrowing permitted by the government.
