OERC asks BSES to give guarantee for its units in Orissa

 The refusal of BSES to give such guarantee had created hurdles in the way of state owned Grid Corporation of Orissa (Gridco) to get a loan of Rs 1200 crore from Power Finance Corporation (PFC).

 Peeved by the non-cooperative stance of BSES, the state government had gone on appeal in OERC against the utility major.

 OERC has passed the order asking BSES to provide performance and financial guarantee for its three distcos in the state while hearing the applications of the three distcos namely Nesco, Southco and Wesco which had demanded escrow relaxation for payment of staff salary.

 OERC has also directed BSES to re-submit the business plan in consultation with Gridco and the state government within a period of 15 days.

 The company had earlier submitted a business plan, but both the state government and Gridco raised certain objections to it.

 The order was passed by a two-member bench of the commission comprising chairman DC Sahoo and member BC Jena.

 Deploring the