Bhubaneswar, January 22: The State Cabinet on Wednesday tendered its post-facto approval for a government guarantee of Rs 3108.21 crore in favour of the GRIDCO Ltd.
The approval is expected to have a positive impact on end consumers, as the reduced interest load on GRIDCO Ltd will help minimize the burden on them.
The guarantee will enable GRIDCO Ltd to swap high-interest term loans with lower-interest loans from commercial banks and financial institutions, ultimately reducing the interest burden on the company.
The Energy Department has issued the government guarantees, totalling Rs 3108.21 crore, after obtaining concurrence from the Finance Department.
During the financial years 2021-22 and 2023-24, the company swapped outstanding high-cost borrowings of Rs 3147.94 crore to avail term loans from commercial banks at lower interest rates.
