Andhra Pradesh has sanctioned an additional Rs 115 crore government guarantee to AP Mining Development Corporation. The state government has decided to increase the credit facility to APMDC from Rs 906.52 crore to 1,021.52 crore, to enable the Corporation participate in the auction of coal blocks.
The state has announced that the government guarantee is applicable both for the principal and interest amounts. However, the state government has imposed a condition that the APMDC would have to repay loans from its own resources. The industries and commerce ministry issued GO RT No. 279 to this effect.
The new orders have been passed in consultation with the finance ministry, officials said.
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