The State Cabinet on Thursday provided approval for the State to stand as a guarantor for ₹13,700 crore loans to be raised by power distribution companies.
“The Cabinet has given administrative consent for the power companies to raise ₹13,708 crore. They will decide on the issue of late payment and surcharges,” Law and Parliamentary Affairs Minister J.C. Madshusawmy said in his post-Cabinet meeting briefing to the media.
Bangalore Electricity Supply Company is planning to raise ₹7,526 crore, the highest among the five power distribution companies, followed by Hubballi Escom — ₹2,528 crore and Gulbarga Escom — ₹2,120 crore. Chamundeshwari Escom and Mangaluru Escom are seeking to raise ₹1,398 and ₹125 crore, respectively.
Investigation into tollgate demolition
The Cabinet also ordered an investigation into the demolition of Bengaluru Elevated Tollway’s tollgate near Silk Board junction besides depositing ₹54.59 crore in the Supreme Court where an appeal has been filed against a court order.
The Law Minister said members of the lorry association were involved in a wrangle that led to the demolition of the toll gate. “The company has accused that government officials were involved. We will investigate the reason and circumstances that led to the demolition. When the demolition took place, the concessionaire still had time to collect toll,” he said, adding that the court’s order went in favour of the company which was being questioned in the Supreme Court.
Modification of energy policy
The Cabinet also approved modifications to the energy policy. While it enhanced the area for a MW of power to be generated from solar power from 3.5 acres to 4 acres, it brought down the date of commencement of the project to two years in the installation of wind energy projects. “Both changes were sought by industry representatives,” Mr. Madhuswamy said.
It also consented for the Chief Minister to appoint a member for the vacant post in the Karnataka Public Service Commission. Besides, ₹18 crore was approved for enhancing the resolution of satellite data obtained under the GIS programme at the Karnataka Remote Sensing Centre.
Among other decisions, the Cabinet consented to setting up of the Government Tool Room Institute at Shiggaon at a cost of ₹77 crore under a NABARD project.
