State finance department officials have informed GIDC that they are against a Goa Industrial Development Corporation (GIDC) proposal which seeks nearly Rs 200 crore from the government to pay the “performance guarantee” for a coal block that GIDC plans to operate.
Sources also said that with the shrinking revenue situation, the government is not in a position to take on such liabilities and GIDC should explore other avenues for the funds needed for the performance guarantee, as required by norms set by the Centre.
Aside from the lack of fiscal space, finance officials argued that GIDC is a corporation and it should try to raise capital from the open market to fund, what is in essence, a “business proposal”. Read More
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