The Finance Ministry on Friday permitted seven States to borrow an additional ₹16,691 crore, linked to their having met specified capital expenditure targets in the June to September quarter.
States were required to achieve at least 45% of their capex targets for the year by the second quarter to be eligible for a nod to raise incremental borrowings from the market. Chhattisgarh, Kerala, Madhya Pradesh, Meghalaya, Punjab, Rajasthan and Telangana had met the targets for the first half of the year, Finance Secretary T.V. Somanathan said.
After the first quarter, 11 States could borrow more.
