Centre allows AP to borrow more

Amaravati: The Union Ministry of Finance has granted additional borrowing permission to two more States -- Andhra Pradesh and Uttar Pradesh for successfully undertaking reforms in the Public Distribution System (PDS) and Ease of Doing Business. This would make an additional amount of Rs 7,376 crore available to these States.

One-Nation-One-Ration Card System ensures availability of ration to beneficiaries under the National Food Security Act (NFSA) and other welfare schemes, especially to the migrant workers and their families, at any Fair Price Shop (FPS) across the country.

It also enables better targeting of beneficiaries, elimination of bogus/ duplicate/ineligible card holders. Thus, new card system enhances welfare and reduces leakage.

The Ministry, in a communique, complimented Andhra Pradesh as it "has become the 1st State in the country to successfully undertake "Ease of Doing Business" reforms and has thus become eligible to raise an additional amount of Rs 2,525 crore through Open Market Borrowings". The Union Finance Ministry also appreciated the good work by Andhra Pradesh government in completing PDS reforms to enable One-Nation-One-Ration-Card System.

Referring to the Ease of Doing Business as an important indicator of an investment-friendly business climate in the country, the Union Ministry said improvement in the EoDB would enable faster future growth of the state economy.

Therefore, in order to incentivize implementation of district level and licensing reforms for EoDB, an additional borrowing facility of 0.25 per cent of GSDP has been allowed to States on the recommendation of the Department for Promotion of Industry and Internal Trade (DPIIT).

The reform envisages undertaking all of the following actions by the State Governments: It said AP would complete the first assessment of 'District Level Business Reform Action Plan' as intimated by the Centre and also eliminate the requirements of renewal of certificates/ approvals/ licences obtained by businesses for various activities from the authorities at the State level as per list circulated to it.

Collection of reasonable fees with automatic non-discretionary deemed renewal would also be permissible as reform if done in a transparent online, non-discretionary and automatic manner. The State would implement a computerized central random inspection system under the Acts.