Team Herald
PANJIM: The State Cabinet on Tuesday approved increasing the guarantee limit to corporations and autonomous bodies from the existing Rs 800 crore to Rs 1500 crore. This was done by moving an amendment to the Goa State Guarantees Act, 1993, during the ongoing monsoon session of the Legislative Assembly.
Government sources confirmed that in view of the fall in the interest rate regime, corporations such as Economic Development Corporation (EDC), Kadamba Transport Corporation (KTC) and Goa State Infrastructure Development Corporation (GSIDC) are able to get loans at lower rate of interest. “They are approaching government for guarantees,” sources said.
“GSIDC is undertaking various infrastructural and other development related projects in the State by availing loans at low rate of interest from financial institutions,” sources added.
The Cabinet, chaired by Chief Minister Laxmikant Parsekar, decided to increase the limit in guarantees from the present Rs 800 crore to Rs 1500 crore.
Sources said that of the ceiling limit of Rs 800 crore, the government has issued guarantees to various corporations/autonomous bodies to the extent of Rs 624 crore in the last financial year and the balance is Rs 176 crore.
“From past guarantees issued to corporations and autonomous bodies, they have repaid to the tune of Rs 72 crore. But this amount cannot be reused as guarantee as most of the cases are under block guarantees which cannot be revocable,” sources explained.
