The Centre on Thursday granted permission to 5 states to boost a complete of Rs 9,913 crore in additional market borrowings for implementing the one-nation-one-ration-card system, one among the four reform conditions identified for availing additional borrowing window of up to twenty of GSDP in FY21.
5 states can raise Rs 9,913 crore as additional financial resources through open market borrowings (OMBs) for “successfully meeting” the central government’s condition of implementing the One Nation One card System.
Andhra Pradesh can borrow Rs 2,525 crore, Telangana Rs 2,508 crore, Goa Rs 223 crore, Karnataka Rs 4,509 crore and Tripura Rs 148 crore, said the Finance Ministry’s Department of Expenditure during a press statement on Thursday.
What is One Nation One Ration Card?
Union Minister Ram Vilas Paswan had earlier implemented the pilot program of ‘One Nation, One Ration Card’ scheme in four states within the year 2019. From 01 January 2020, One Nation, One card Scheme was implemented in 12 states across India.
The PDS system was marred with inefficiency resulting in leakages within the system. To plug the leakages and make the system better, the govt started the reform process.
Benefits of ‘One Nation, One card Scheme
it’ll reduce the practice of black marketing at the PDS shops. Currently, the PDS shop owner sells these food grains within the market within the absence of the particular beneficiaries.
it’ll reduce the incidence of hunger death within the country which can further improve the Indian rank within the Global Hunger Index ranking.
One decimal point of this is often subject to the implementation of the following four specific state-level reforms, where the weightage of every reform is 0.25% of GSDP — implementation of one-nation-one-ration Card System; simple doing business reform; urban local body/ utility reforms; and power sector reforms. The remaining additional borrowing limit of 1 decimal point was to be released in two installments of 0.5% each – first immediately to all or any the states as untied, and therefore the second on undertaking a minimum of 3 out of the above-mentioned reforms. The Centre has already granted permission to states to boost the primary 0.5% as market borrowing in June. This made available a further amount of Rs 1,06,830 crore to the states.