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Municipal Finance

GVMC clinches Rs.100 crore loan

Tuesday, 29 June 2010 05:01 administrator
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The Hindu      29.06.2010

GVMC clinches Rs.100 crore loan

Staff Reporter

The Government has given its nod this March, says official

Corporation was ahead in meeting mandatory reforms like taking up GIS/GPS mapping: official

Proposals for extending Asilmetta flyover and extension of BRTS to be placed before council

VISAKHAPATNAM: Bringing a long drawn out process to fruition, the fund-starved Greater Visakhapatnam Municipal Corporation has finally received a letter of approval from the Bank of India for a Rs.100 crore loan at an interest rate of 8.25 per cent.

Hard pressed to meet its commitment of 30 per cent contribution to the Jawaharlal Nehru National Urban Renewal Mission, the GVMC had sent its proposal to borrow Rs.200 crore to the State Government early in 2009. The Government had given its nod this March after which the corporation started negotiating with financial institutions and banks.

“We have received the letter sanctioning the loan today and the Finance Department has been asked to prepare the necessary documents to enter into an MoU,” Municipal Commissioner V.N. Vishnu told reporters who met him on Monday.

Mr. Vishnu said the Government of India and the State Government had to release Rs.47 crore to the corporation for the ongoing works. The total amount would be spent on meeting the pending bills of Rs.180 crore towards JNNURM works. A plan of action will be prepared up to December to utilise the Rs.147 crore.

Technical bids

The commissioner said the technical bids for the development of 11 corporation sites in public private participation mode would be placed before the next corporation meeting for approval. After that the financial bids would be opened.

Mr. Vishnu said the corporation was ahead in meeting the mandatory reforms like taking up GIS/GPS mapping, utilising water treated by sewage treatment plants to getting the JNNURM funds.

On the land-related problems in the Bus Rapid Transit System, the Navy officials had okayed land for land offered and assured him that the approval of the Director General of Defence Estates would be obtained. The proposals for extending the Asilmetta flyover and extension of BRTS from Adavivaram to Gosala would be placed before the council.

Last Updated on Tuesday, 29 June 2010 05:02
 

Self-help groups to get 100-cr. loans

Tuesday, 29 June 2010 04:57 administrator
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The Hindu      29.06.2010

Self-help groups to get 100-cr. loans

Staff Reporter

VIJAYAWADA: The Vijayawada Municipal Corporation (VMC) has plans to distribute Rs. 100-crore loans to 10,000 Self-Help Groups (SHGs) in the city by March 2011, according to Municipal Commissioner G. Ravi Babu.

The VMC organised a meeting on Monday to distribute loans worth Rs. 10.53 crores to 659 SHGs in the city.

On the occasion, he said that about 10,000 SHGs were functioning in the city and the corporation had decided to form some more SHGs. As per the new SLBC guidelines, the loans would be distributed every month. Continuous monitoring of the SHGs that availed themselves of the loans would be done by social workers and community development organisers.

Mayor M.V. Ratna Bindu, Vijayawada MP Lagadapati Rajagopal, Vijayawada West MLA Vellampalli Srinivas, Vijayawada Central MLA Malladi Vishnu, MLC Ilapuram Venkaiah, Deputy Mayor S.P. Gritton and others were present.

Last Updated on Tuesday, 29 June 2010 04:58
 

HMDA all set to seal HUDCO deal

Friday, 18 June 2010 05:03 administrator
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The Hindu      18.06.2010

HMDA all set to seal HUDCO deal

Staff Reporter

To mortgage land for Rs. 700 crore assistance

HUDCO charging 8.75 % interest while HMDA has earlier borrowed from others at 11.5 %

HMDA plans to clear its earlier loans from the assistance being provided by HUDCO

HYDERABAD: The Hyderabad Metropolitan Development Authority (HMDA) which has been assured of a financial assistance to the tune of Rs.700 crore by the Housing and Urban Development Corporation (HUDCO) these days is busy attending to the formalities for realising the amount.

For the amount, which could offer a much needed reprieve for a financially beleaguered HMDA facing some tough times after real estate boom took a nose dive, land mortgages are to be made. “We are in the process of identifying the land that could be offered as mortgage for the promised assistance,” an official said.

The sanction orders have already been received by the Authority from the HUDCO and the necessary formalities are expected to be attended to in the next fortnight. According to the official, the mortgage has to be of the value of 125 per cent of the amount being given.

Described as being provided on favourable terms, this assistance is being planned for using to clear the HMDA's earlier borrowings that were taken at a higher interest rate. While the HUDCO is charging 8.75 per cent, the past borrowing that are pending with the HMDA have come at an interest rate of 11.5 per cent. “A part of the past burden can be reduced with the fresh assistance and it will reduce the interest burden on us,” he said.

The HUDCO terms have been favourable in the sense that the payback period has been put at 15 years and it also offers a certain moratorium on repayment.

Last Updated on Friday, 18 June 2010 05:13
 
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