The Hindu 04.09.2012
GVMC to borrow more for urban mission
With one and a half years remaining to complete the
projects taken up under the Jawaharlal Nehru National Urban Renewal
Mission, the Greater Visakhapatnam Municipal Corporation has plans to
borrow an additional Rs.150 crore.
It is biding its
time in view of the money to be released by the State government. The
State government has to pay Rs.126 crore, including its share of 20 per
cent towards the works completed under the urban mission project so far.
“For works worth Rs.40 crore completed by contractors, bills are due.
If the government releases the amount, it will see through the works for
now. That’s why we are weighing the timing of the loan,” said an
official of the GVMC on Monday.
The corporation has
so far borrowed about Rs.300 crore to meet its 30 per cent share for the
Rs.1,895-crore urban mission works. Of the cost, Rs.180 crore is
towards 15,500 houses for which no share of the corporation is required.
But, an additional water supply project estimated to cost Rs. 80 crore
has been included. Altogether, the corporation’s share comes to Rs.540
crore. The corporation has raised Rs.100 crore from its own resources.
With
the corporation expecting the money to be released by the government,
putting off taking the Rs.150-crore loan will help it save on interest
as the rates presently are ruling high. But three, four months from now
the corporation has no alternative but going in for the loan, say
sources. The corporation general body had already given its consent for
the borrowing before its term ended this February and the government
issued a GO.