Maharashtra Govt to be guarantor for loans for power utilities
With the electricity utilities facing a cash flow issue due to the nationwide lockdown, the Maharashtra cabinet on Tuesday gave its approval for the government to be the guarantor for Rs 20,000 crore borrowing by the state-run utilities.
Sources said the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL) has been experiencing nearly 30 per cent reduction in daily power consumption and monthly shortfall of Rs 3,500 crore in collection since April following the nationwide lockdown. The electricity utilities need the loan to tackle the power purchase cost, salaries, operations and maintenance and debt servicing, said officials.
