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Madhya Pradesh starts DBT scheme for farmers; leads in power sector reforms

Madhya Pradesh is leading the states in power sector reforms with the initiation of Direct Benefit Transfer (DBT) scheme

twitter-logoBusinessToday.In | January 19, 2021 | Updated 18:41 IST
Madhya Pradesh starts DBT scheme for farmers; leads in power sector reforms

Madhya Pradesh is leading the states in power sector reforms with the initiation of Direct Benefit Transfer (DBT) scheme.

The DBT Scheme has started for agricultural consumers in the State.

"The Scheme has been implemented in Vidisha District of the State, where electricity is supplied through the M.P. Madhya Kshetra Vidyut Vitaran Co. Limited with effect from December, 2020," said a statement from the Ministry of Finance.

An amount of Rs 32.07 crore was transferred to the bank accounts of 60,081 beneficiaries in the month of December under the scheme."Parallelly, the State has also initiated a process to implement the DBT scheme in Jhabua and Seoni districts as well," further said the statement.

With the implementation of the scheme in 3 districts in Phase-I, the Scheme will be further rolled out in the entire State in FY 2021-22.

Successful implementation of the reform has made the State eligible to mobilise additional financial resources equivalent to 0.15 percent of its Gross State Domestic Product (GSDP)."

The Department of Expenditure has granted permission to the State to mobilise additional financial resources of Rs. 1,423 crore through Open Market Borrowings. This has provided the much needed additional financial resources to the State to fight COVID-19 pandemic," read the statement.

Power sector reforms intend to create a transparent and hassle free provision of power subsidy to farmers and prevent linkages. They also aim to improve the health of power distribution companies by alleviating their liquidity stress in a sustainable manner.

The four citizen centric areas identified for reforms were (a) Implementation of One Nation One Ration Card System, (b) Ease of doing business reform, (c) Urban Local body/utility reforms and (d) Power Sector reforms.

Till now, 14 states have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions.

Also read: Subsidy on food at Parliament canteen removed, prices to be hiked

Also read: Union Budget 2021: States ask FM Sitharaman to put FRBM Act on hold to spur growth

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