Andhra Pradesh eligible for Rs 2,525 crore Open Market Borrowings

Besides AP and UP, Telangana was permitted to borrow Rs 2,508 crore, Karnataka Rs 4,509 crore, Goa Rs 223 crore, and Tripura Rs 148 crore for PDS reforms.
Andhra Pradesh CM YS Jagan Mohan Reddy (Photo| EPS)
Andhra Pradesh CM YS Jagan Mohan Reddy (Photo| EPS)

VIJAYAWADA: After topping the country in undertaking ‘Ease of Doing Business’ (EoDB) reforms, Andhra Pradesh has become eligible to raise an additional Rs 2,525 crore through Open Market Borrowings (OMBs).

This is the second time the State has been given such permission.

It was earlier permitted to draw Rs 2,525 crore for reforms in the Public Distribution System (PDS).

The Ministry of Finance on Friday granted additional borrowing permission to Uttar Pradesh and Andhra Pradesh to the tune of Rs 7,106 crore.

While UP became eligible to raise an amount of Rs 4,851 crore through OMBs for completing the reform process in PDS to implement the One Nation One Ration Card System, AP was permitted to borrow Rs 2,525 crore to undertake reforms in EoDB.

Besides AP and UP, Telangana was permitted to borrow Rs 2,508 crore, Karnataka Rs 4,509 crore, Goa Rs 223 crore, and Tripura Rs 148 crore for PDS reforms.

To incentivise the implementation of district-level and licensing reforms for EoDB, a borrowing facility of 0.25 per cent of Gross State Domestic Product (GSDP) has been allowed to States on the recommendation of the Department for Promotion of Industry and Internal Trade (DPIIT).

In view of the Covid-19 pandemic, the Centre allowed an additional borrowing limit of up to 2 per cent of GSDP to the States for the year 2020-21. This made an amount up to Rs 4,27,302 crore available to the States.

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