VIJAYAWADA: Andhra Pradesh becomes the second state to undertake power sector reforms and has obtained permission from the Centre to mobilise additional financial resources of Rs1,515 crore. Of this, the state can mobilize Rs 9,190 crore for reforms in four citizen-centric areas.
Officials said Andhra Pradesh has become the second state – the first being Madhya Pradesh — to undertake the power sector reforms on the basis of stipulations framed by the Department of Expenditure, Union Ministry of Finance. As advised, the state has started Direct Benefit transfer (DBT) of electricity subsidy to farmers with effect from September, 2020. This is one of the three stipulations in the reforms proposed for the power sector.
Successful implementation of the reform has made the state eligible to mobilise additional financial resources equivalent to 0.15 per cent of its Gross State Domestic Product (GSDP). “Accordingly, the Department of Expenditure has granted permission to…