Bhubaneswar: In a major relief for cash
starved Grid Corporation of Orissa (Gridco), the state
government today agreed to gurantee a loan of Rs 1,000 crore
by the corporation.
A proposal in this regard was approved by the state
cabinet meeting chaired by Chief Minister Naveen Patnaik, said
Chief Secretary T K Mishra.
Claiming that the Gridco urgently required cash
assistance to overcome the financial difficulties caused due
to purchase of power at higher price from other sources, the
chief secretary said the corporation's energy purchase account
deficit was recorded at Rs 630 crore.
While Gridco purchases electicity at higher price, it
sales to distribution companies at about 80 paise less per
unit, he pointed out.
He, however, expected that the Gridco's financial
situation would improve only after an increase in the power
tariff or generation of more energy from hydel projects.
PTI
First Published: Saturday, March 20, 2010, 23:20