Consider power producers' demand: Himachal Pradesh CM to coop bank

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Shimla, May 25

The request of the independent power producers to reduce the interest rates on loans for the construction of mini and micro power projects will be considered, said Chief Minister Jai Ram Thakur. He was presiding over a meeting regarding the issues of hydroelectric power projects (Bonafide Himachali Association) in Shimla today.

He said the state cooperative bank was providing loans to the power producers at 10.50 per cent, which was earlier 13.75 per cent. He said keeping in view the financial constraints being faced by the power producers, he urged the bank to consider their demand to further lower the interest rate on their loan.

Thakur said the government loan term should be increased from the existing 30 years to 40 years to facilitate the independent power producers. Their request to consider one-time settlement or outright sale would also be considered.

Power Minister Sukh Ram Chaudhary also urged the Chief Minister to reduce the rate of interest on the loans. He said the issue of converting the unserviced interest into funded interest term loan at zero per cent interest would also be considered.

Additional Chief Secretary, Power and Industries, RD Dhiman conducted the proceedings of the meeting.