SHILLONG: The state government has approved the Meghalaya Ceiling on Government Guarantee’s Bill, 2025, which is set to be introduced for consideration during the upcoming Assembly budget session.
After chairing a cabinet meeting in Sohra on Friday, Chief Minister Conrad K. Sangma stated that the Bill is necessary to establish a proper mechanism or structure for the state government when providing loan guarantees to government agencies.
"The government often guarantees loans taken by various agencies such as MeECL or MTDC. While these loans are obtained by the agencies, banks require government guarantees. Over the years, we have provided such guarantees, primarily for MeECL, but this was done without a proper mechanism or structured framework," he said.
“Hence, the Government of India, especially the RBI, has directed state governments to formulate an Act that establishes a ceiling or overall structure for government guarantees. This means defining how much a state government can guarantee in a particular year, the extent to which loans taken by different agencies can be guaranteed, and the rules to be followed, among other aspects. This Act will define the Meghalaya Ceiling on Government Guarantees. Therefore, this Bill was presented before the Cabinet today, and we have passed it. It will now be placed before the budget session of the Assembly for approval,” he informed.
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