Cabinet Approves Rs 2600 cr Bank Guarantee to GRIDCO

Bhubaneswar: The State Cabinet under the chairmanship of Chief Minister Naveen Patnaik today gave clearance to a proposal for providing Government Guarantee of Rs.2600.00 Crore for the loans to be availed by GRIDCO during Financial Year 2020-21.

The guarantee will enable GRIDCO to get about 2 percent interest concession from the Banks.

With this the financial cost of GRIDCO to get reduced; and in turn the retail tariff for industries, MSMEs & general consumers shall be lower.

Notably, the state owned GRIDCO is supplying power to four distribution companies of the State at the bulk supply price (BSP) determined by OERC.

In order to ensure uninterrupted power supply to the consumers, State Government has been providing Guarantee for enabling GRIDCO to avail term loans from time to time.

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