India, July 14 -- With the highest ever bank guarantee of Rs.62,569 crore in the financial year 2024-25 for loans taken by its own public sector undertakings and the interest on them, the total cumulative guarantee of the state stands at over Rs.1.44 lakh crore. Experts and officials from the finance department claim that public sector units (PSUs) are forced to raise loans as a result of populist schemes like Ladki Bahin, and this could affect the government's credit ranking in the market.

According to the documents tabled by the finance department in the legislative assembly on Friday, the government gave bank guarantees for loans of Rs.62,569 crore in FY2024-25. One of these pertains to the Maharashtra State Electricity Distribution C...