New Delhi: The Centre has permitted two states -- Andhra Pradesh and Madhya Pradesh -- to borrow additional financial resources to the tune of Rs 4,898 crore following reforms in urban local bodies (ULBs), the Finance Ministry said on Wednesday.
The two states have successfully completed the set of reforms required in the functioning of ULBs, as specified by the Department of Expenditure.
"Andhra Pradesh and Madhya Pradesh have been granted permission to mobilise additional financial resources to the tune of Rs 4,898 crore through open market borrowings.
"Out of these, Andhra Pradesh has received permission of Rs 2,525 crore, while Madhya Pradesh has been permitted to mobilize additional Rs 2,373 crore," the Ministry said in a statement.
Reforms in the urban local bodies and the urban utilities reforms are aimed at financial strengthening of ULBs in the state and to enable them to provide better public health and sanitation services.