Cabinet okays Rs 1000-crore govt guarantee for Gridco

Bringing much desired relief to cash starved Gridco, the Orissa government today decided to provide government guarantee of Rs 1000 crore to the power utility, enabling it to raise loans to tide over the financial difficulties.

The state cabinet chaired by chief minister, Naveen Patnaik has approved a proposal moved by the state energy department in this regard. It also put its seal of approval for exemption of inspection fee required to be paid to the government for the works taken up under the Biju Gram Jyoti and Biju Saharanchal Jyoti Yojana.

Talking to the media after the meeting, chief secretary, Tarun Kanti Mishra, said, since inspection fee exemption has been allowed on the rural electrification works taken up under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), the cabinet approved the waiver for the wotks taken up under these two schemes launched under the state plan.

Water resources secretary, Suresh Chandra Mohapatra, who is holding additional charge of energy department, said, Gridco has arrear bills of Rs 630 crore to pay. Since there is gap of Rs 80 paise per unit between the price at which the power is sold and purchased, Gridco is loosing Rs 150 crore per month.

It has already availed Rs 900 crore loan during the current fiscal for power purchase.The government guarantee would help the utility to manage the situation till next summer, he added.

In another significant decision, the state cabinet approved a proposal of the labour and employment department to form ‘Orissa State Social Security Board’ for the workers in the un-organised sector. Since the state government proposes to frame rules namely, ‘Orissa un-organised Workers Social Security Rules, 2010’, the constitution of this board has become necessary to implement various welfare schemes for the un-organised workers including the self-employed workers.

The board would be headed by the minister , labour and employment department and the secretary of the department would be member-secretary of the board. It would have 28 member in all. Simultaneously, the cabinet also approved an amendment to definition of the workmen in the Industrial Dispute Act, 1947, bringing the employees engaged in sales promotion activity within the ambit of it.

On the other hand, the repeal of the Orissa Minerals (Prevention of Theft Smuggling & Other Un-lawful Activities) Act, 1989 was also endorsed by the state cabinet. Since the Government of India (GoI) has amended the MMDR Act, 1957 in 1999, prescribing punishment for the offenders, there is no necessity for continuance of this state act, Mishra said.