AP, Telangana Complete Stipulated Reforms In Ease Of Doing Business, Can Borrow Extra Rs 16,728 Crore

NEW DELHI: The Finance Ministry on Sunday said five states, including Andhra Pradesh, Telangana, have been permitted to borrow an additional Rs 16,728 Crore following completion of stipulated reforms for 'Ease of Doing Business'.

Apart from the Telugu States, Karnataka, Madhya Pradesh, and Tamil Nadu are the other states, which have been permitted to borrow the extra amount.

The Central Government in May decided to link grant of additional borrowing permission to states with reforms undertaken by them to facilitate ease of doing business.

The reforms stipulated in the category include completion of first assessment of 'District Level Business Reform Action Plan'.

Besides, elimination of requirements of renewal of registration certificates/approvals/licences obtained by businesses for various activities, at least under certain Acts specified by the Centre, was also part of the reforms.

"5 states have so far completed the stipulated reforms in the Ease of Doing Business. These states have been granted permission to mobilize additional financial resources to the tune of Rs 16,728 crore through open market borrowings," the Ministry said in a statement.

The states were  also required to complete four specific reforms -- implementation of 'One Nation, One Ration Card' system, ease of doing business reforms, urban local body/utility reforms and power sector reforms by February 15, 2020 to get the benefits.

Reform linked borrowing permissions are facilitating #EaseofDoingBusiness reforms

➡️5 States completed stipulated reforms in #EaseofDoingBusiness
➡️Additional borrowing permission of Rs.16,728 crore granted

Read more ➡️ https://t.co/DQGaOJ58aM@nsitharamanoffc@PIB_India

— Ministry of Finance (@FinMinIndia) December 20, 2020