<h1>Reform-linked borrowing: states granted additional borrowing permission after meeting power sector targets to reduce losses and subsidy leakages.</h1> The central framework conditions part of enhanced state borrowing on achievement of specified power sector reforms: measurable reductions in AT&C losses and the ACS ARR gap, or implementation of Direct Benefit Transfer of electricity subsidy to farmers. States meeting these targets receive additional borrowing permission from the Department of Expenditure equivalent to a prescribed fraction of their GSDP; seven states have so far been granted a total of Rs. 5,032 crore under these reform linked permissions.