Indian Express 21.01.2010
Loan: Few banks willing, PMC extends deadline
The Pune Municipal Corporation (PMC) bid to procure a Rs 276-crore loan from a nationalised bank has run into rough weather with the civic body not getting favourable response from a minimum of three banks.
The civic administration had come out with an advertisement seeking the loan from nationalised banks in the language newspapers last week, wherein the banks were asked to apply within a week. As per the stipulated terms, the loan will have a minimum repayment window of 12 years, under the monthly reducing balance system.
However, the municipal corporation had to reissue the advertisement again this week and extend its deadline till this Friday. Reason: only two nationalised banks have responded to the advertisement, while it is necessary to get at least three bids. An official from the civic tender cell said, “We were forced to re-issue the tender as it’s necessary to get a minimum of three responses from three banks. Some private banks have shown interest, but it is up to the administration to decide whether to consider them.”
It was in May last year that the civic standing committee passed a proposal to seek the loan after the corporation found itself in a Rs 140-crore deficit in 2008-’09. It also needed money to carry out projects. Despite resistance from the opposition, a general body meeting in June approved the loan proposal. The government approval came in November.
“We had forwarded the loan proposal before the Assembly elections. We had mentioned that permission should be granted to take a loan from any bank. The government wrote back that the loan should be taken only from a nationalised bank,” said Ulka Kalaskar, chief accountant of PMC
