VIJAYAWADA: In what could be seen as a respite to cash-starved Andhra Pradesh, the Union Finance Ministry on Thursday gave permission for the State to raise additional financial resources of Rs 2,525 crore through Open Market Borrowings (OMBs). Andhra Pradesh, along with four other States, has got the permission to go for OMB as all the five have met the condition of implementation of ‘One Nation One Ration Card’ system.
In May this year, in view of the COVID-19 pandemic, the Centre allowed additional borrowings — up to 2 per cent of Gross State Domestic Product (GSDP) — to the States for the 2020-21 fiscal. Of the two per cent, one per cent is subjected to implementation of four State-level reforms, which include ‘One Nation One Ration Card’ system, ease of doing business reforms, urban local body/utility reforms and the power sector reforms.
Having adopted the One Nation One Ration Card system, AP got eligibility to get 0.25 per cent of the OMB. The weightage given to each reform is 0.25 per cent of the GSDP.As the State has also agreed to implement power sector reforms, it is likely to get permission to get another 0.25 per cent Open Market Borrowings.
The remaining additional borrowing limit of one per cent will be released in two instalments of 0.50 per cent each — first immediately to all the States and the second on undertaking at least three out of the above mentioned reforms. While AP was permitted to borrow Rs 2,525 crore, Telangana was permitted to take Rs 2,508 crore, Karnataka Rs 4,509 crore, Goa Rs 223 crore and Tripura Rs 148 crore through OMBs.
Buggana meets Nirmala
Finance Minister Buggana Rajendranath Reddy sought the support of the Centre for taking up various projects and urged it to release pending GST funds and reimbursement of the money spent on Polavaram project.Buggana, along with a delegation, called on Union Finance Minister Nirmala Sitharaman and Union Minister of State for Finance Anurag Thakur on Thursday in Delhi and discussed various issues pertaining to the State.
Speaking to the media later, he said apart from the GST compensation, funds for Polavaram project and various schemes, they also sought industrial incentives to Ramayapatnam port and Kadapa Steel Plant. They also reminded the Centre about the coveted Special Category Status.He said that the State should get around Rs 3,000 crore towards GST compensation.Buggana also met Niti Aayog Advisor (WR&LR) Avinash Mishra.
When reporters asked about rejection of Rs 760 crore bills related to the Polavaram project, Buggana said the question of rejection does not arise and added that there might be some delay because of the procedural lapses. Principal Advisor (to CM) Ajeya Kallam, Principal Secretary (Finance) SS Rawat, YSRC MPs Lavu Krishna Devarayulu and Kotagiri Sridhar and others were present.