Andhra Pradesh government increases APMDC coal auction guarantee to ₹1,021.52 crore

The Andhra Pradesh government issued a Government Order (G.O.) on Monday increasing the guarantee provided to the Andhra Pradesh Mineral Development Corporation (APMDC) for participating in coal block auctions to ₹1,021.52 crore. According to a report by The Hindu, this increase includes an additional amount of ₹115 crore added to the previously approved credit facility of ₹906.52 crore.

Mukesh Kumar Meena, Principal Secretary of Mines, stated in the order that the government had previously permitted APMDC to obtain non-fund based credit facilities up to ₹906.52 crore from commercial banks, financial institutions, or the State Bank of India, subject to certain conditions.

Subsequently, APMDC had requested an additional credit facility of ₹115 crore with government guarantee to create additional financial capacity for participating in coal block auctions and for its business requirements. This request has been approved by the government.

This government guarantee will remain valid until the entire tenure of the loan is completed. However, APMDC shall fulfill its debt repayment obligations through its own resources. This government guarantee will be utilised only if the corporation fails to meet its obligations towards the lending institution.