Himachal may cut loan interest rates to small power projects

Shimla : Himachal Pradesh could consider the request of the Independent Power Producers to reduce the interest rates of loans taken by them for construction of mini and micro power projects.

Himachal Pradesh Chief Minister Jai Ram Thakur while presiding over a meeting said presently the State Cooperative Bank was providing loan to the power producers at an interest rate of 10.50 percent, which earlier was 13.75 percent.

He said keeping in view the financial constraints being faced by the power producers, he urged the Bank to sympathetically consider their demand to further lower the interest rate of the loan amount.

The loan term could be increased from the existing 30 years to 40 years in order to facilitate the independent power producers. Jai Ram said that the request of the Independent Power Producers before the Bank to consider One Time Settlement (OTS) or outright sale would be also considered sympathetically.

Power Minister Sukh Ram Chaudhary also urged the Chief Minister to reduce rate of interest on the loans provided by the State Cooperative Bank to facilitate the Independent Power Producers of the State.

He said that the issue of converting the un-serviced interest into Funded Interest Term Loan (FITL) at a rate of zero percent interest would also be considered sympathetically.