Centre has provided financial incentives to 12 states to accelerate power sector reforms. The Finance Ministry said, these states will receive over 66 thousand crore rupees incentives for reforms in the power sector. These states include Uttar Pradesh, West Bengal, Rajasthan, Tamil Nadu, Kerala, Manipur and Andhra Pradesh. The primary objectives of granting financial incentives for undertaking power sector reforms are to improve operational and economic efficiency within the sector and promote a sustained increase in paid electricity consumption.

The Ministry said, based on the recommendations of the Power Ministry, it has granted permission for reforms undertaken in 2021-22 and 2022-23 to twelve State governments. Over the last two financial years, they have been allowed to raise financial resources of 66 thousand 413 crore rupees through additional borrowing permissions. In the financial year 2023-24, states can continue to avail themselves of the facility of additional borrowing linked to power sector reforms. The Ministry said, an amount of over one lakh 43 thousand crore rupees will be available as an incentive to states for undertaking these reforms.


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