Kolkata: The Department of Expenditure, Ministry of Finance has allowed additional borrowing permissions to the tune of Rs 15,263 crore to the power sector in Bengal.
The move will enable the state in undertaking reforms to enhance the efficiency and performance of the power sector.
The primary objectives of granting financial incentives for undertaking power sector reforms are to improve operational and economic efficiency within the sector and promote a sustained increase in paid electricity consumption.
As many as 12 states, including Bengal, have received Rs 66,413 crore in incentives for reforms in the power sector. Under this initiative, an additional borrowing space of up to 0.5 per cent of the Gross State Domestic Product (GSDP) is available to the states annually for a four-year period from 2021-22 to 2024-25. This additional financial window is dependent on the implementation of specific reforms in the power sector by the states.
Bengal is followed by Rajasthan with financial incentives of Rs 11,308 crore and Andhra Pradesh with Rs 9,574 crore. Tamil Nadu has received Rs 7,054 crore and Uttar Pradesh has got Rs 6,823 crore.
In the financial year 2023-24, states can continue to avail themselves of the facility of additional borrowing linked to power sector reforms. An amount of Rs. 1,43,332 crore will be available as an incentive to states for undertaking these reforms in 2023-24. States that were unable to complete the reform process in 2021-22 and 2022-23 may also benefit from the additional borrowing earmarked for 2023-24 if they carry out the reforms in the current financial year.