Andhra Pradesh Increases Coal Auction Credit Guarantee to Over One Thousand Crore Rupees

The Andhra Pradesh government raised its financial guarantee for the state mineral development corporation to one thousand twenty-one crore and fifty-two lakh rupees for coal block auctions.

Financial Details

Principal Secretary for Mines Mukesh Kumar Meena issued the order on Monday. This new amount adds one hundred fifteen crore rupees to the earlier approved credit limit of nine hundred six crore and fifty-two lakh rupees. The corporation can use this non-fund-based credit facility from commercial banks, financial institutions, or the State Bank of India.

Loan Terms

State officials stated that the government guarantee stays valid for the entire loan period. The corporation must pay back the debt using its own earnings. The state will step in only if the corporation fails to make its payments to the lender.

Context

State mineral development corporations often require large financial backing from state governments to participate in national resource auctions. These credit guarantees help state bodies secure funds from major commercial banks for large-scale industrial bids.