VIJAYAWADA: The Union Finance Ministry has allowed Andhra Pradesh to borrow an additional sum of Rs 5,858 crore for the year 2022-23.
In a post on X, the Union Ministry of Finance said, the 15th Finance Commission had recommended performance-based additional borrowing space of 0.5% of GSDP to States in the power sector, over and above the normal net borrowing ceiling.
Six States—Andhra Pradesh, Assam, Kerala, Rajasthan, Sikkim, and West Bengal—have been allowed to borrow an additional Rs 27,238 crore for 2022-23. They are eligible to borrow an additional sum of approximately Rs 1,43,332 crore on the recommendations of the Ministry of Power for FY 2023-24. Last fiscal, Andhra Pradesh was allowed to borrow an additional Rs 3,716 crore.
The Union Ministry had announced the scheme for four years in 2021-22. State governments have to initiate mandatory reforms in the power sector and meet stipulated performance benchmarks to be eligible. Key evaluation criteria include a percentage of metered electricity consumption against total energy consumption, including agricultural connections, and payment of electricity bills by government departments and local bodies.