Andhra Pradesh government raises APMDC’s coal auction guarantee to ₹1,021.52 crore

VIJAYAWADA

The State government issued a G.O. on Monday enhancing the guarantee extended to the Andhra Pradesh Mineral Development Corporation (APMDC) for participating in coal block auctions to ₹1,021.52 crore. The enhancement includes an additional ₹115 crore over the previously approved credit facility of ₹906.52 crore.

Principal Secretary (Mines) Mukesh Kumar Meena, in the order, said the government had earlier permitted the APMDC to avail itself of non-fund-based credit facilities from commercial banks, financial institutions or the State Bank of India up to ₹906.52 crore, subject to certain conditions.

Subsequently, the APMDC sought an additional credit facility of ₹115 crore, backed by a government guarantee, to facilitate its participation in coal block auctions and provide the corporation with additional financial headroom for its business requirements.

The government guarantee will remain valid for the entire tenure of the loan. The APMDC is required to meet its debt-servicing obligations from its own resources. The guarantee will be invoked only if the corporation fails to meet its obligations to the lending institution.

Published - November 09, 2026 08:13 pm IST