The State Cabinet here on Tuesday decided to provide to Madhya Pradesh Finance Corporation additional funds as share capital equal to amount of guarantee fee paid or to be given by it.
The corporation gives loans to small and medium entrepreneurs. As a result of this decision, the corporation will be able to extend low-interest loans to entrepreneurs of backward areas.
The Cabinet decided to extend duration of Rs1868.81 crore guarantee on loan taken from Rural Electrification Corporation by power distribution companies for implementing feeder separation scheme up to December 31, 2015 or till amendment in escrow cover for Sasan project, whichever is earlier.
The Cabinet decided to cancel notification dated October 4, 2011, for management of Government land available for establishment of power plants with private capital with effect from May 20, 2013.
The Cabinet also decided to extend till December 31, 2015, the duration of Rs1388.23 crore security on loans sanctioned to Rural Electrification Corporation to power distribution companies for R-APDRP Part-B Scheme.
The cabinet decided to revise cost of Singaji thermal power project’s first phase (2X600 MW) of Madhya Pradesh Power Generating Company from Rs6750 crore to Rs7820 crore and that of Satpura thermal power station’s extension units 10 and 11 (2X250 MW) from Rs3032 crore to Rs3514 crore.
The cabinet decided to give three-year government security to Madhya Pradesh State Cooperative Bank limited in favour of NABARD to acquire Rs416.27 crore from it for conversion of short-term to 3-year medium-term, the loans taken from cooperative banks by farmers affected by natural calamities during Rabi 2012-13, Kharif 2013 and Rabi 2013-14. Besides, it would be exempted from security fee.
Apart from the Government security, it was also decided to give loan subsidy on additional Rs71.19 amount of short-term to medium-term conversion of loan given by primary agriculture credit cooperative societies linked with District Cooperative Central Banks in 10 districts during Kharif-2013 and state government’s 15 percent share will also be provided.