Municipal Administration Minister K.T. Rama Rao has asserted that the government was firm on utilising the funds mobilised through the bonds issued by the Greater Hyderabad Municipal Corporation (GHMC) only for the Strategic Road Development Programme (SRDP).
The government had so far raised ₹200 crore through the bonds in the first tranche and it was proposed to mobilise another ₹800 crore during the next financial year. The bonds were proposed to be raised based on the robust revenue mobilisation and credit rating achieved by the GHMC, he said.
He said the State was seeking the help of the Central government through interest subvention as the bonds carried interest rate of 8.9%.
In this context, Mr. Rama Rao recalled the fact that his conversation with Prime Minister Narendra Modi when the latter came for inauguration of the first phase of the Metro Rail project and said the Prime Minister in fact appreciated the State for its initiative in opting for bonds to raise resources.
Replying to a question that came up during the Question Hour in the Legislative Assembly on Thursday, the Minister said SRDP was launched by the Government on priority for GHMC area and this included components like skyways, grade separators, flyovers and development of major corridors. On the ongoing works, he said works close to ₹3,000 crore were in progress in different parts of the city for widening of roads and junction improvement works at various locations.
