Meghalaya Govt approves Meghalaya Ceiling on Govt Guarantor’s Bill, 2025

Syllad | The Rising MeghalayaJanuary 12, 2025

The state government has approved the Meghalaya Ceiling on Government Guarantor’s Bill 2025, which will be introduced in the upcoming Assembly’s budget session for consideration.

Informing after chairing a cabinet meeting at Sohra on Friday, Chief Minister Conrad K Sangma said the Bill is required in order for the state government to come up with proper mechanism or structure while guaranteeing loans to government agencies.

“The government from time to time guarantees the loans taken by different government agencies like MeECL or MTDC – so the loans are being taken by these agencies but the banks requires the government to guarantees these loans and we have done for so many organizations, mostly MeECL but this was done without proper a mechanisms or a structure,” he said.

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“Hence government of India especially the RBI has asked the different state governments to come up with an Act that will put a ceiling or a structure overall to these government guarantees that are there which means how much can a state government give in a particular year, how much can a government guarantee for loans taken by different agencies and up to what limit, what are the rules to be followed and so on and so forth, this particular Act will define the Meghalaya Ceiling on Government Guarantees. Therefore, this Bill was today brought before the Cabinet and accordingly we have passed it and we will be placing it before the budget session of the Assembly for clearing it,” he informed.