Bihar may opt for short-term loans in the wake of funds crunch because of "no flow" of Backward Regions Grant Fund (BRGF) in the current financial year to power chief minister Nitish Kumar's resolve to provide continuous electricity to everybody.
The option of loans was discussed at a nine-hour closed-door meeting of the governing body of Bihar Vikas Mission chaired by Nitish at his secretariat on Tuesday to discuss the progress of his "seven resolves".
"Our schemes to strengthen transmission and distribution system with better equipment and facilities have hit a financial hurdle because the state has not got BRGF worth Rs 4,000 crore this financial year. We discussed alternative fund arrangements like short to mid-term loans from agencies like Rural Electrification Corporation and Housing and Urban Development Corporation," a senior energy department official said.
He added that if such loans are approved to allow smooth progress of the ongoing electricity schemes, they would be repaid from Niti Aayog funds that the state would receive in 2016-17 and beyond.
