- BJP caricature of Rahul Gandhi not working any more: Tharoor
- PM inaugurates ferry service between Ghogha and Dahej in Guj
- AP CM Naidu meets scientists and food experts in US
- Democratic chairman: Trump 'most dangerous' president ever
- Mukul Roy likely to be inducted in BJP in Nov: party leader
- Militant killed in encounter in J-K's Kupwara
State Govt entities now allowed direct external borrowings
State Government entities can now directly seek loans from bilateral overseas lending agencies for infrastructure projects of over Rs 5,000 crore, the Union Finance Ministry said on Thursday.
Earlier, the rules did not permit direct borrowings by the State Government entities from external agencies. Only, the central government could have raised external funds on behalf of State Governments.
“It has been decided to allow direct borrowing by financially sound State Government entities from bilateral ODA (Official Development Assistance) partners, based on State Government Guarantee and Government of India counter guarantee” subject to certain conditions.
State Government entities will include any ‘authority’, public sector undertaking or organisation of the state. The guidelines prescribe that loans can be obtained by state government entities having an annual revenue of more than Rs 1,000 crore in the three previous years for infrastructure projects of over Rs 5,000 crore.
“"The project should have regular revenue stream -- the revenues to be generated from the project should be enough for repayment of principal amount and interest,” the ministry said. The revenues from the project would be escrowed to the extent of payment of principal and interest from time to time.
The relaxation is aimed at funding major infrastructure projects, social sector projects and building institutional capacities. It would help State Government agencies in implementing projects having huge financial requirements which otherwise would have been faced fund crunch despite being viable.
- Macro-data led positive momentum lifts equity indices 22 Oct 2017 | IANS
- AP CM for greater India-US co-op in agri sector 22 Oct 2017 | PTI
- Tata Steel Netherlands workers protest Thyssenkrupp merger 22 Oct 2017 | PTI
- PM hails IFFCO's steps for farmer's upliftment 22 Oct 2017 | PNS
- Govt fixes Sovereign Gold Bond rate at Rs 2,971 per gram 22 Oct 2017 | PNS
- Linking bank A/Cs with Aadhaar mandatory: RBI 22 Oct 2017 | PNS
- Govt to float tender for Wi-Fi service in panchayats by 2019 21 Oct 2017 | PTI
- Only 2,300 bank branches launch Aadhaar enrollment, updation centres 21 Oct 2017 | PTI
- Anant Raj acquires 26% stake in Delhi mall for Rs 225 crore 21 Oct 2017 | PTI
- Income tax unions threaten stir against new software rollout 21 Oct 2017 | PTI
Sunday EditionView All
STATE EDITIONSView All
22 Oct 2017 | Staff Reporter | Bhopal
Chief Minister Shivraj Singh Chouhan will reach Washington DC on October 22. He has been invited by Pt Deendayal Upadhyay Forum, where he will address as a key speaker in the programme organised by the forum...