Bhubaneswar: The State Cabinet has given its post-facto approval for a government guarantee of Rs 3108.21 crore in favour of GRIDCO Ltd.
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 government’s decision 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 Energy Department has issued the government guarantees, totalling Rs 3108.21 crore, after obtaining concurrence from the Finance Department.
GRIDCO Ltd has been proactive in reducing its interest costs by negotiating with lenders offering lower interest rates and swapping high-cost borrowings.
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.
