On Sunday, the Finance Ministry said that five states, including Andhra Pradesh, Telangana, were allowed to borrow an additional Rs 16,728 Crore after completion of stipulated 'Ease of Doing Business' reforms. Karnataka, Madhya Pradesh, and Tamil Nadu are the other states that have been allowed to borrow the extra amount, apart from the Telugu States. In May, the Central Government decided to connect the granting of additional borrowing permits to states to reforms implemented by them in order to facilitate the ease of doing business. The changes listed in the category include the completion of the first 'District Level Market Improvement Action Plan' review. Furthermore, it was also part of the reforms to remove the criteria for the renewal of registration certificates/approvals/licences obtained by enterprises for various activities, at least under certain Acts defined by the Centre.
"5 states have so far completed the stipulated reforms in the Ease of Doing Business. These states have been granted permission to mobilise additional financial resources to the tune of Rs 16,728 crore through open market borrowings," the Ministry said in a statement. Four unique reforms were also required by states to complete: implementation of the 'One Country, One Ration Card' scheme, ease of doing business reforms, urban local body/utility reforms and reforms of the power sector by February 15, 2020 to get the benefits.