Madhya Pradesh has become the first State to give electricity subsidy through Direct Benefit Transfer.
“The State has started DBT of electricity subsidy to farmers in one district with effect from December 2020. Thus, the State has successfully implemented one out of the three stipulated reforms in the power sector,” said a statement issued by the Finance.
The scheme has been implemented in Vidisha district of the State, where electricity is bring supplied through the MP Madhya Kshetra Vidyut Vitaran Co Ltd with effect from December 2020. Under the scheme, an amount of Rs. 32.07 crore was transferred to the bank accounts of 60,081 beneficiaries in December.
This made the State eligible to mobilise additional financial resources equivalent to 0.15 per cent of its Gross State Domestic Product (GSDP). Accordingly, the Expenditure Department under the Finance Ministry gave a go-ahead to borrow additional Rs. 1,423 crore through Open Market Borrowings.