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As many as nine states have completed One Nation One Ration Card reform following which the central government has allowed them to raise an additional Rs 23,523 crore, said an official release. The states which have successfully completed the Public Distribution System (PDS) reforms are Andhra Pradesh, Goa, Gujarat, Haryana, Karnataka, Kerala, Telangana, Tripura and Uttar Pradesh.
Uttar Pradesh is the biggest beneficiary with an additional borrowing window of Rs 4,851 crore, followed by Karnataka Rs 4,509 crore and Gujarat Rs4,352 crore. Department of Food and Public Distribution in the Ministry of Consumer Affairs, Food and Public Distribution is the Nodal Department to certify that a State has met the conditions stipulated for this reform, the Finance Ministry statement said.
Further, to become eligible for additional borrowing, the States have to complete the reforms by December 31, 2020, it said, adding, it is expected that many more states will complete this reform before the stipulated date. In addition to the One Nation One Ration Card, it said, other reforms specified as a precondition to avail additional borrowing are: ease of doing business reform, urban local body/utility reforms and power sector reforms.
In view of the challenges posed by the COVID-19 pandemic for mobilisation of financial resources, the Indian government has strengthened the hands of the States through multiple measures including grant of additional borrowing permission of 2 per cent of the Gross State Domestic Product (GSDP) during 2020-21. This has enabled the States to mobilise additional financial resources to fight the pandemic and maintain the standards of service delivery to the public, it said.
