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| FM's SPEECH on UNION BUDGET 2001-2002 |
25. MOUs have already been entered into with 5 States and we expect more States to adopt the reform process. Accordingly, plan allocation to the Accelerated Power Development Programme (APDP) has been stepped up to Rs 1500 crore next year from a level of Rs 1000 crore this year. Priority under APDP would be given to those states that undertake such reform. The key to restoration of financial viability is reform of distribution. Assistance from the Fiscal Reform Incentive Fund recommended by the 11 th Finance Commission would also, inter-alia, be linked to the achievement of power reforms. The reforming States would also receive support from the Central Government in form of preferential allocation of power to SEBs from CPSUs, additional investment by CPSUs in generation and transmission, and preferential allocation of external aid.
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