Centre okays addl 0.5% loan for AP power sector reforms

The Central government has opened avenues for states to secure an additional 0.5 per cent in loans to facilitate the implementation of crucial reforms in the power sector.
Andhra Pradesh has been approved by the Central government to access an additional 0.5 per cent loan specifically earmarked for the implementation of reforms in the power sector. This initiative aligns with the overarching goal of addressing three key aspects of electricity reforms. While a total of 12 states took advantage of this opportunity during the financial year 2021-22, noteworthy among them is Andhra Pradesh, which stands among the six states that have been extended this opportunity. In accordance with the recommendations set forth by the 15th Finance Commission, Union Finance Minister Nirmala Sitharaman, from the Union Finance Department, announced the authorization of additional loans from the market.
In the fiscal year 2021-22, utilising this financial provision, the Andhra Pradesh government availed a loan amounting to Rs 3,716 crore. With the latest directive, the state now has the potential to access a loan of Rs 5,858 crore. This opportunity is not exclusive to Andhra Pradesh, as the Central government has also greenlit additional loans for the states of Assam, Kerala, Rajasthan, Sikkim, and West Bengal.
Union Finance Minister Nirmala Sitharaman disseminated the details of this development through social media (X), highlighting that states are being allowed to secure supplementary loans from the market based on the recommendations of the Union Power Ministry.