APPFCL to avail Rs 2,000-crore SBI loan supported by Andhra Pradesh government
The Andhra Pradesh government has approved a state guarantee for APPFCL to avail a Rs 2,000-crore loan from SBI. Funds will support state power utilities, infrastructure projects, and O&M activities, following the Managing Director’s request for government backing
Amaravati: The Andhra Pradesh government has accorded a State guarantee to the APPFCL to avail a Rs 2,000-crore loan from the SBI for onward lending to power utilities and other purposes.
The Andhra Pradesh Power Finance Corporation Ltd is availing the term loan from the State Bank of India’s commercial branch in Vijayawada. “Government hereby accords approval for providing a government guarantee to APPFCL for an amount of Rs 2,000 crore for availing a term loan from SBI, Commercial Branch, Vijayawada,” Chief Secretary K Vijayanand said in a GO on Wednesday.
Besides lending to state power utilities, APPFCL will also deploy the funds for other infrastructure development projects and operation and maintenance (O&M) activities undertaken by various entities, the GO added.
The APPFCL Managing Director had requested the state government to issue orders to stand as guarantor in favour of SBI for the loan.
