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Union Finance Minister Nirmala Sitharaman, on June 28, announced allocation of Rs 3.03 lakh crore for a revamped reform-based result-linked power distribution scheme. Of this, the Centre’s share would be Rs 97,631 crore.
The scheme is aimed at providing financial assistance to DISCOMS for infrastructure creation, up-gradation of system, capacity building and process improvement said the minister during a press conference.
“We expect it is one of the major reforms with state specific intervention in place of one size fits all,” she said.
Sitharaman said states have already been allowed additional borrowing for four years upto 0.5% of Gross State Domestic Product annually (Rs 1,05,864 Cr for 2021-22) subject to carrying out specified power sector reforms.
The finance minister announced some new relief measures amid economic distress caused by the second wave of COVID-19 in the country.
The ongoing work under the IPDS, DDUGJY and SAUBHAGYA scheme will be merged, FM Sitharaman said.