Chandigarh, October 19- Haryana Cabinet which met under the Chairmanship of Chief Minister, Sh. Manohar Lal here today accorded Ex-post facto approval to a proposal for providing State Government Guarantee of Rs. 500 crore in favour of State Bank of India, against the sanctioned Capex loan of Rs. 500 to Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVNL) for meeting the Capital expenditure and power purchase payments.

The Nigam manages its day-to-day operations by using fund-based and non-fund-based working capital limits sanctioned by various banks. Due to the increase in power purchase payments, to meet the capital expenditure requirement and provide a Letter of Credit in favour of power suppliers as per Ministry of Power guidelines, UHBVNL requires fresh working capital loans and Capex loans.

To meet the fund-based requirement, UHBVNL had requested the bank to sanction the Capex loan of Rs. 500 crore. The State Bank of India has considered the Nigams request and sanctioned a Capex Loan of Rs. 500 crore.