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Fulfilling the Centre's power reform condition, Madhya Pradesh has become India's first state to give electricity subsidy through Direct Benefit Transfer. With this, the state has become eligible for additional borrowing.
A statement issued by the Finance Ministry on Tuesday, January 19, said that the state had started Direct Benefit Transfer (DBT) of electricity subsidy to farmers in one district with effect from December 2020.
It also mentioned that with this reform, the state has successfully implemented one out of the three stipulated reforms in the power sector.
Starting from effect since December, as of now, this scheme has been implemented in Vidisha district where electricity is bring supplied through the MP Madhya Kshetra Vidyut Vitaran Co Ltd with effect from December 2020.
For the implementation of the scheme, an amount of ₹32.07 crores was transferred to the bank accounts of 60,081 beneficiaries in December.
Apart from this, the state has also started a process to implement the DBT scheme in Jhabua and Seoni districts.
After the scheme was successfully implemented across three districts in Phase I, it was further planned that it will also be rolled out in the entire state in the next financial year.
The statement also informed that through reforms in the power sector aim at creating a transparent and hassle-free provision of power subsidy to farmers and prevent leakages.
Apart from this, they also aim at improving the health of power distribution companies by alleviating their liquidity stress in a sustainable manner.
As reported by Business Today, the four citizen-centric areas identified for reforms were, Implementation of One Nation One Ration Card System; Ease of doing business reform; Urban Local body/utility reforms and 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.
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