States will have access to Rs 1.4 trillion additional market borrowing in FY24 as part of the finance ministry’s push to encourage states for power sector reforms.
The finance ministry in a statement said 12 states used the provision in FY22 and FY23 to cumulatively borrow Rs 66,413 crore from the bond market. West Bengal borrowed the highest amount (Rs 15,263 crore), followed by Rajasthan (Rs 11,308 crore), Andhra Pradesh (Rs 9,574 crore) and Kerala (Rs 8,323 crore).
The scheme was first announced in FY22 Budget, allowing states additional borrowing space of up to 0.5 per cent of the Gross State Domestic Product (GSDP) for a four-year period from FY22 to FY25.
