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Odisha Guarantees Loans to GRIDCO

Odisha Government Provides Guarantee to GRIDCO for Reduced Loan Interest Rates

Bhubaneswar, Jan 22 : The Odisha Cabinet, chaired by Chief Minister Mohan Charn Majhi, has approved a post-facto sanction of a government guarantee amounting to ₹3,108.21 crore for GRIDCO Ltd., facilitating term loans from commercial banks and financial institutions at reduced interest rates.

The decision, taken on Wednesday, aims to help GRIDCO Ltd. lower its interest burden by swapping high-interest loans with lower-interest ones. Over the fiscal years 2021–22 and 2023–24, GRIDCO successfully swapped outstanding high-cost borrowings totaling ₹3,147.94 crore, resulting in significant savings on interest expenses.

To support these efforts, the state’s Energy Department issued guarantees amounting to ₹3,108.21 crore, replacing surrendered guarantees after obtaining concurrence from the Finance Department. This measure aligns with GRIDCO’s strategic initiatives to minimize borrowing costs.

According to an official source, the reduced interest burden will directly benefit end-users by minimizing the financial load on electricity tariffs. The Cabinet’s decision underscores the Odisha government’s commitment to ensuring financial efficiency and affordability in the energy sector.

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