The Hindu 05.03.2013
GVMC to borrow another Rs.75 crore
GVMC will soon borrow Rs.75 crore from Hudco to tide
over the tight financial condition it has been facing. The money will go
towards financing its share of 30 per cent in the Jawaharlal Nehru
National Urban Renewal Mission. The corporation has taken up 20 projects
worth Rs.1,890 crore in the urban mission. It has so far borrowed Rs.
290 crore from financial institutions and banks to fund the mission
works.
The long-term loan of Rs.75 crore is being
taken to speed up works on the Rs.450-crore Bus Rapid Transit System
being executed in two corridors of a total of 40 km and drinking water
projects in view of the approaching summer.
Ironically,
GVMC’s funds have been locked up with AP Urban Infrastructure
Development Corporation. A total of Rs.240 crore, released by the
Central and State governments, was to have been released a few months
ago. But owing to alleged procedural irregularities in award of works in
Vijayawada Municipal Corporation, a committee has been formed to look
into the process in the others mission cities as well. The committee has
gone into the alleged irregularities and it is learnt that no
irregularities are found in GVMC.
However, the issue
is still pending with the government costing GVMC dearly. With the funds
locked up, the progress has been slow in the BRTS which is on a trial
run presently on the Pendurti corridor. For instance, bus shelters are
not in place and commuters have to wait for buses in scorching sun.
“The
situation will considerably ease once Rs.75 crore is drawn and
contractors are paid the Rs.60-crore due to them. Besides we are also
expecting the government to release some funds,” says an official of
GVMC. The in principle sanction letter has been given by the lending
agency. The other formalities are now being completed to enable draw
money in the next week, it is learnt.
The general
body of the municipal corporation has accorded its approval for
obtaining a loan of Rs.150 crore for footing the 30 per cent cost. The
government has also issued a GO for the borrowing. However, the
corporation has scaled down the borrowing considering the likely release
of funds by the government and also to reduce the interest burden.
In
the recent revised budget estimates for 2012-13, the corporation has
shown a borrowing of less than Rs.100 crore and obtained the special
officer’s permission.