Two more States successfully implement reforms, get additional borrowing permission of Rs. 7,376 crore

Two more States successfully implement reforms, get additional borrowing permission of Rs. 7,376 crore

Ministry of Finance

Ministry of Finance has granted additional borrowing permission to two more States, Uttar Pradesh & Andhra Pradesh for successfully undertaking reforms in the Public Distribution System (PDS) and Ease of Doing Business. This will make an additional amount of Rs. 7,376 crore available to these States.

Uttar Pradesh has become the 6th State to complete the reform process in PDS to implement One Nation One Ration Card System. This has made the State eligible to raise an amount of Rs. 4,851 crorethrough Open Market Borrowings (OMBs). This amount will help the State in mobilizing additional financial resources required to fight COVID-19.

One Nation One Ration Card System ensures availability of ration to beneficiaries under the National Food Security Act (NFSA) and other welfare schemes, especially to the migrant workers and their families, at any Fair Price Shop (FPS) across the country. It alsoenables better targeting of beneficiaries, elimination of bogus/ duplicate/ineligible card holders. Thus,One Nation One Ration Card enhances welfare and reduces leakage.

To ensure seamless inter-state portability of a ration card, Aadhar seeding of all ration cards as well as biometric authentication of beneficiaries through automation of all Fair Price Shops (FPSs) with installation of electronic point of sale (e-PoS) devices are essential. Department of Food and Public Distribution is the nodal Ministry to assess reform claims of the States and recommend release of additional borrowing limit of 0.25 percent of GSDP.

The Department of Food and Public Distribution has confirmed that the States of Uttar Pradesh, Andhra Pradesh, Telangana, Goa, Karnataka and Tripura have successfully carried out aforesaid reforms in PDS and implemented One Nation One Ration Card System

Andhra Pradesh has became the 1st State in the country to successfully undertake “Ease of Doing Business”reforms and has thus become eligible to raise an additional amount of Rs. 2,525 crore through Open Market Borrowings.Earlier Andhra Pradesh had also completed PDS reforms to enable One Nation One Ration Card System.


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