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FM Nirmala Sitharaman allocates Rs 3.03 lakh crore for reform-based, result-linked power distribution scheme

FM Nirmala Sitharaman said that states have already been allowed additional borrowing for four years up to 0.5 percent of the Gross State Domestic Product annually, subject to carrying out specified power sector reforms.

June 28, 2021 / 04:51 PM IST
Union Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman, on June 28, announced allocation of Rs 3.03 lakh crore for a revamped reform-based result-linked power distribution scheme. Of this, the Centre’s share would be Rs 97,631 crore.

The scheme is aimed at providing financial assistance to DISCOMS for infrastructure creation, up-gradation of system, capacity building and process improvement, the finance minister said during a press conference.

The scheme will put forward state-specific intervention in place of a "one size fits all" approach.

Participation is contingent to pre-qualification criteria like publication of audited financial reports, upfront liquidation of state government's dues/subsidy to DISCOMS and non-creation of additional regulatory assets, FM Sitharaman said.

The finance minister announced some new relief measures amid economic distress caused by the second wave of COVID-19 in the country.

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The finance minister announced that 25 crore smart meters, 10,000 feeders and 4 lakh kilometre of LT overhead lines have been planned.

The ongoing work under the IPDS, DDUGJY and SAUBHAGYA scheme will be merged, FM Sitharaman said.

States have already been allowed additional borrowing for four years up to 0.5 percent of the Gross State Domestic Product (GSDP) annually (Rs 1.05 lakh crore for FY22) subject to carrying out specified power sector reforms, the finance ministry added.



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first published: Jun 28, 2021 04:51 pm
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