The Ministry of Finance has granted permission to five states to raise additional financial resources of Rs. Rs 9,913 crore through Open Market Loans (OMB).
The five states: Andhra Pradesh ( ₹2525 crore), Telangana ( ₹2508 crore), Goa ( ₹223 crore), Karnataka ( ₹4509 crore) and Tripura ( ₹148 crore) – according to the Ministry of Finance they have successfully fulfilled the reform condition for the implementation of the One Nation One Ration Card System.
In view of the unprecedented covid-19 pandemic, the central government allowed in May an additional borrowing limit of up to 2% of the State’s Gross Domestic Product (GSDP) to states for fiscal year 21, amounting to ₹4.3 trillion. Although the government has already granted permission to the states to collect the first 0.5% in June, which allowed them to collect ₹1.1 trillion available to the states, the remaining 2.5% of indebtedness is linked to the implementation of reforms in four areas, such as the implementation of the One Nation One Ration Card System; ease of conducting business reforms, local urban agency / utility reforms, and electricity sector reforms.
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