Rs. 5,000 cr loan to be availed for paddy purchase

Vijayawada: The state government accorded permission to the Andhra Pradesh State Civil Supplies Corporation Limited (APSCSCL) to avail a loan or cash credit facility of Rs 5,000 crore from commercial banks and financial institutions to meet paddy procurement expenses for the kharif marketing season 2025–26.

Civil supplies department ex-officio secretary Saurabh Gaur issued G O MS No 25 on Tuesday to this effect. The loan will be availed within the overall permitted limit of Rs 44,000 crore. The government will extend a state guarantee for the Rs.5,000 crore loan to ensure smooth procurement operations and timely payments to farmers.

As per the GO, APSCSCL vice-chairman and managing director is authorised to enter into agreements with banks and financial institutions for fresh or renewed loans, as well as for debt swapping, as part of the procurement process. The corporation will also pledge procured stocks as per banking norms and maintain accounts according to the loan conditions.

The government said that the borrowed funds must be prudently utilised to minimise the interest burden. The commissioner of civil supplies has been instructed to obtain periodic reports from the corporation on the cash credit position and submit them to the government for record purposes.