Odisha Becomes Seventh State To Implement Ease Of Doing Business Reforms

by Arun Kumar Das - Dec 31, 2020 11:32 AM +05:30 IST
Odisha Becomes Seventh State To Implement Ease Of Doing Business ReformsOdisha Chief Minister Naveen Patnaik. (Government of Odisha/Wiki Commons)
Snapshot
  • Odisha joins six other states in successfully implementing ‘ease of doing business’ reforms, and earns additional borrowing worth 1,429 crore.

Odisha has now joined six other states — Andhra Pradesh, Karnataka, Madhya Pradesh, Rajasthan, Tamil Nadu and Telangana — who have undertaken reforms facilitating ease of doing business to become eligible for additional borrowing.

These seven states have been granted permission for additional borrowing of Rs 20,888 crore.

The Finance Ministry has permitted Odisha government led by Naveen Patnaik to borrow an additional Rs 1,429 crore after the state successfully undertook ease of doing business reforms.

"Odisha has become the seventh state in the country to successfully undertake Ease of Doing Business reform stipulated by the Department of Expenditure, Ministry of Finance. Thus, the state has become eligible to mobilise additional financial resources of Rs 1,429 crore through Open Market Borrowings," the Ministry said.

The ease of doing business is an important indicator of the investment-friendly business climate in the country. The government had in May (2020) decided to permit states to borrow additional funds if they undertook reforms stipulated in this category.

The reforms include completion of first assessment of 'District Level Business Reform Action Plan', elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various acts.

In view of the resource requirement to meet the challenges posed by the Covid-19 pandemic, the government had in May enhanced the borrowing limit of states by 2 per cent of their gross state domestic product (GSDP).

Half of this special dispensation was linked to the states undertaking citizen-centric reforms — implementation of ‘One Nation One Ration Card’ system, ease of doing business reforms, urban local body/utility reforms and power sector reforms.

So far, 10 states have implemented ‘One Nation One Ration Card’ system, seven states have done ease of doing business reforms, and two have done local body reforms.

The Centre has so far allowed total additional borrowing of Rs 51,682 crore by the states who have undertaken all these reforms.

Arun Kumar Das is a senior journalist covering railways. He can be contacted at akdas2005@gmail.com.


Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.
Advertisement

Latest Articles

    Artboard 4Created with Sketch.