Andhra Pradesh Government Secures Rs 2,000-Crore Loan for Power Sector Boost

The Andhra Pradesh Government has provided a state guarantee for a Rs 2,000-crore loan from SBI, aiding the Andhra Pradesh Power Finance Corporation Ltd (APPFCL). The funds will support state power utilities and other infrastructure projects, marking a significant financial step for regional development.

In a substantial financial move, the Andhra Pradesh government has extended its support by guaranteeing a Rs 2,000-crore loan that the Andhra Pradesh Power Finance Corporation Ltd (APPFCL) seeks from State Bank of India (SBI). This loan is aimed at enhancing power utilities and developing infrastructure in the state.

The Chief Secretary of Andhra Pradesh, K Vijayanand, confirmed the government's approval, indicating that APPFCL would acquire this significant term loan from SBI's commercial branch located in Vijayawada. The funds are not solely intended for power utilities but also earmarked for various infrastructure development initiatives and operation and maintenance activities.

The APPFCL managing director had previously sought assistance from the state government to act as a guarantor for obtaining the loan. This state-backed financial maneuver is expected to bolster the power sector and its associated projects across Andhra Pradesh.

(With inputs from agencies.)