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4 more states complete reforms in ease of doing business, get permission for Rs 5,034 cr extra loan

BusinessToday.In     February 6, 2021

Four more states namely, Assam, Haryana, Himachal Pradesh and Punjab have undertaken "Ease of Doing Business" reforms stipulated by the Department of Expenditure, Ministry of Finance. Following the completion of reforms facilitating ease of doing business, these state have become eligible to mobilise additional financial resources and have been granted permission to raise additional Rs 5,034 crore through open market borrowings.  

So far, 12 states have implemented ease of doing business reforms and have got additional borrowing permission of Rs 28,183 crore. Earlier, Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana have also reported completion of this reform, which was confirmed by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Finance said on Saturday.  

The ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the ease of doing business will enable faster future growth of the state economy.  

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In May 2020, the central government had announced to link grant of additional borrowing permissions to states who undertake the reforms to facilitate ease of doing business. The government had enhanced the borrowing limit of the states by 2 per cent of their GSDP in view of the resource requirement to meet the challenges posed by the COVID-19 pandemic.

The four citizen centric areas for reforms identified were -implementation of one nation one ration card system, ease of doing business reform, urban local body/ utility reforms and power sector reforms.

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Till now, 17 states have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions. Out of these, 12 states have implemented the one nation one ration card system, 12 have done ease of doing business reforms, 5 have done local body reforms and 2 have undertaken power sector reforms. Total reform linked additional borrowing permission issued so far to the states stands at Rs 74,773 crore.

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