Indian Express 10.12.2010
With major projects on hand, Vadodara civic body looks to HUDCO for funds
hitarthpandya Tags : Vadodara Municipal Corporation, Housing and Urban Development Corporation Limited, HUDCO Posted: Fri Dec 10 2010, 05:02 hrs
Vadodara: Rail overbridges, sprawling gardens along the banks of the Vishwamitri, a ring road and a network of stormwater channels ¿ these mammoth projects had given the politicians and the officials at the Vadodara Municipal Corporation a lot to cheer about as far the city’s development was concerned.But with funds drying up and few avenues left to generate them, VMC has, as a proactive step, decided to take a loan of Rs 200 crore from the Housing and Urban Development Corporation Limited (HUDCO).
Senior officials at the VMC Accounts Department told The Indian Express that the financial institution has already approved the loan, but they have adopted a wait and watch policy before taking a final decision. But in all possibilities the loan will be taken and the same will be reflected in the forthcoming budget. The annual budget for 2011-12 will be announced sometime in January 2011.
“It is true that we have initiated the process to take the loan. We had actually explored various financial institutions including private and public sector banks, but their rates were exorbitant. We finally approached HUDCO and they have approved the loan of Rs 200 crore. We have been mentioning in our last two annual budgets the possibilities of taking a loan, but this time there are strong chances of taking it,” VMC Chief Accountant Ashok Tamboli said.
He added that the loan has been taken to avoid any problems with the execution of the projects which are in progress. But sources in the department said that residents might have to bear additional taxes. Tamboli added: “We might need approximately more than Rs 100 crore and even if we impose additional taxes, it will not come to even Rs 20 crore. That is why we decided to take the loan from HUDCO. It has not been decided whether additional taxes will be levied on the residents.”
