Cabinet nod to APTRANSCO to raise Rs 300 cr in 2006-07

Hyderabad, Nov 13 (UNI) The Andhra Pradesh cabinet today permitted the State Transmission Corporation to raise another Rs 300 crore during this fiscal by private placement of bonds and provided counter-guarantee for serving the same.

The bond issue was part of the TRANSCO's proposal to raise Rs 975 crore in four years from 2005-06 in order to discharge liability towards waiver of Rs 1,280 crore power bill arrears of farmers in keeping with the Congress poll promise, official sources said.

The TRANSCO, which had raised Rs 200 crore, planned to mobilise Rs 300 crore this year, Rs 125 crore in 2007-08 and Rs 300 crore in 2008-09, they added.

The Government provided counter-guarantee for Rs 384.28 crore for availing a loan of Rs 1,280.96 crore by the Southern Power Distribution Company of Andhra Pradesh from the Rural Electrification Corporation and Power Finance Corporation for improving the transmission and distribution system with the assistance of the Japan Bank of International Cooperation.

The Cabinet also provided government guarantee of Rs 170 crore to the State Housing Corporation for raising Rs 4,595 crore from banks for implementation of the housing component of the INDIRAMMA programme, the sources added.

UNI SM SRS HT1945