Interim Budget allocates ₹7,217.4 cr. to offset loss incurred by Tangedco

Provision for tariff subsidy increased to ₹8,834.68 cr.

The interim Budget has allocated ₹7,217.4 crore in the estimates for 2021-22 to offset losses incurred by Tangedco, as per commitments under the Ujwal DISCOM Assurance Yojana (UDAY).

A sum of ₹8,413.98 crore had been provided towards tariff subsidy in the revised estimates for 2020-21, which has been further increased to ₹8,834.68 crore in the interim Budget estimates for 2021-22.

A total of ₹4,563 crore has been provided towards the fifth and final instalment for converting Tangedco’s debt into a grant over a five-year period under UDAY, in the interim Budget estimates for 2021-22.

The government has also provided ₹37,130.3 crore as a guarantee to Tangedco for availing loans from financial institutions and banks during the financial year 2020-21 to tide over its financial crisis.

The interim Budget pointed out that 2020-21 was a difficult year for transport corporations due to COVID-19, and State Transport Undertakings had incurred revenue loss of ₹3,717.36 crore till January 2021.

The government permitted transport corporations to obtain loans based on a government guarantee of ₹3,739 crore to meet ongoing commitments.

In addition, ₹2,914.44 crore had been released towards student and other concessions, besides ₹526.47 crore as short-term loan and ₹135.87 crore as diesel subsidy to enable STUs to meet salary, pension and operational commitments.

The interim Budget estimates for 2021-22 provide ₹623.59 crore towards a project to procure 12,000 buses, including 2,000 electric buses, over the next few years.

The provision for food subsidy has been increased from ₹6,500 crore to ₹9,604.27 crore in the revised estimates for 2020-21.

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