The Power Finance Corporation (PFC) has sanctioned a short term loan of Rs 200 crore to Grid Corporation of Orissa (Gridco). The credit is part of a Rs 1200 crore long term loan applied by the state utility to meet its payment commitments for purchase of bulk power from the generators.
PFC sanctioned the loan after receiving the state government guarantee in this regard last week. The short term loan has been sanctioned pending final approval of the PFC board on the full requested amount. Gridco has south Rs 1200 crore loan from PFC which will be repayable over a period of 5 to 7 years.
As per the tripartite agreement with the Centre, Gridco has to pay the current bill of the National Thermal Power Corporation (NTPC) in full failing which the default amount will be adjusted from the state
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