VIJAYAWADA: The State Energy department has modified its earlier order granting government guarantee to the Andhra Pradesh Power Finance Corporation Ltd for swapping high-interest bearing debt. While the earlier order gave an ‘irrevocable and unconditional’ guarantee to mobilise Rs 5,000 crore for AP discoms for servicing the debt of power bonds, the amended order stated that the guarantee was also for availing term loans from banks as well.
According to the order issued on Friday by Energy secretary N Srikant, the decision was to improve the overall fiscal status. “Amendment is that the unconditional and irrevocable government guarantee is for availing of term loan from Banks as well as for issue of bands in the interest of reducing the burden of servicing of interest by APGENCO and AP Power Development Company Ltd,” the GO read. The government had earlier given guarantee for Rs 11,416 crore but later revised it to Rs 5,000 as the discoms did not utilise the consent.