Deccan Chronicle 17.12.2009

Fund crunch hits Godavari project

Hyderabad, Dec. 16: Close on the heels of the Metro rail project slowly getting into a quagmire, the Godavari drinking water project for supplying water to the city too seems to be following suit. The Water Board had planned to mortgage its lands and obtain loans to fund the project. But, with uncertainty shrouding the unity of the state, officials fear the land prices would go down and the banks may not consider land as collateral for sanctioning loans.

The Telangana factor has hit hard the prospects of the project as neither the JNNURM authorities nor the banks are willing to fund the project in the volatile political scenario.

The phase-I of the project, estimated to cost Rs 3,375 crore, is all set to be delayed. Even the state government is not in a position to finance the project.

Enquiry revealed that works on Godavari Srujala Sravanthi, a dream project of late YSR, have almost come to a halt. The cash-strapped Water Board has written to the state to come to its rescue.

Though the state government allocated Rs 250 crore in its budget for the project, it is yet to release the money. On the other hand, the Greater Hyderabad Municipal Corporation (GHMC) too has not given the Rs 350-crore first instalment for execution of the project as directed by YSR.

The Phase-I of the project requires over Rs 1,100 crore every year. It has to be completed by March 2011 but it looks unlikely with Water Board struggling to raise funds.

As if this was not enough, the Water Board also needs to acquire 1,100 acres of land between Hyderabad and Karimnagar to lay pipelines. A senior official told this correspondent that the Board is now looking for financial support from the Centre. “A request has been made to the Centre to declare it as a national project and extend financial help,” he said.

The Phase-I is aimed at bringing in 175 million gallons a day to meet the drinking water needs of Greater Hyderabad. This will grow ultimately to 31 TMC feet by 2031.