The New Indian Express 29.11.2010
Water Board short of funds for project
The project estimated to cost Rs 3,375 crore was to be completed by December 2011. Because of such a large amount, the state government had to provide counter guarantees for the loan.
According to senior officials, it is learnt the government rejected the HUDCO loan proposal because of the reported precarious financial position of the HMWS&SB. With no income sources, they would not have been able to repay the loan.
It now seems doubtful whether the project will actually go ahead, as the government itself is in a tight financial position and cannot release funds. With the new chief minister Kiran Kumar Reddy still to know about the project, it might go on the back-burner.
HMWS&SB officials said the government had to come forward and provide counter guarantees, as it was a huge amount. If the loan was small, HUDCO would have given it, they added.
Execution of the ambitious project has been hit due to lack of funds for the second year running with budget allocation for 2010- 2011 being only Rs 250 crore as against requirement of over Rs 960 crore.
