Kerala is borrowing an additional Rs 6,000 crore. The Center had earlier given approval to borrow Rs 5,990 crore.
With this, Kerala will have an additional debt of Rs 11,990 crore. The additional loan was approved in the context of the electricity reforms. The state argued that the changes introduced in the electricity sector, including the participatory pension, have increased the state’s borrowing limit. The state had also informed the center that it could borrow around Rs 12,000 crore in this way.
The state government had sought permission to borrow a total of Rs 18,000 crore. After borrowing Rs 5,900 crore, the state had sought permission for an additional Rs 6,000 crore after submitting a report on power sector reforms. This Rs 6,000 crore will be a big relief for the state as the end of the financial year approaches.
