The finance ministry allowed two states i.e. Rajasthan and Andhra Pradesh to borrow additional Rs 7,309 Crores for launching specified power sector reforms. The states have been allowed to borrow additional Rs 5,186 crore and Rs 2,123 crore respectively, an official statement said.

The finance ministry has decided to permit additional borrowing of up to 0.5 per cent of the Gross State Domestic Product (GSDP) to the states every year for a four-year period from 2021-22 to 2024-25 based on reforms undertaken in the power sector. The extra resources of over Rs 1 lakh Crores will be available every year to the states. The aim of the extra borrowing is to improve the operational and economic efficiency of the sector, and promote a sustained increase in paid electricity consumption, the statement added.