Bhubaneswar: The Odisha government Wednesday gave post facto approval for the Rs 3108.21 crore guarantee extended to State owned transmission utility GRIDCO Ltd.
The State energy department has issued government guarantees amounting to Rs.3108.21 crore in lieu of surrendered guarantees after concurrence of finance department.
The State Cabinet today has approved the post facto sanction of government guarantee amounting to Rs 3108.21 crore on swapping basis in favour of GRIDCO Ltd. for term loans availed from Banks / FIs, would reduce the interest load of GRIDCO Ltd leading to minimizing the burden on end consumers.
GRIDCO Ltd. has taken several initiatives for reduction of interest costs on the said term loans. As a part of the initiatives, GRIDCO Ltd. negotiated with the lenders having lower interest rates and swapped term loans having higher rate of interest. As such, during FY 2021-22 and FY 2023-24 GRIDCO Ltd. had swapped outstanding high cost borrowings of Rs.3147.94 crore for availing term loans from commercial banks to save interest cost.
