If the Corporation Bank’s loan of Rs.50 crore were to be taken into consideration, the VMC effectively would have to mobilise Rs.98 crore for UIG projects.

The Vijayawada Municipal Corporation (VMC) requires Rs.132 crore, excluding Corporation Bank loan and entitlements from the Andhra Pradesh Urban Finance and Infrastructure Development Corporation (APUFIDC), to complete the ongoing projects taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme.

Now, the ball is in the State government’s court. The corporation has asked the government to shoulder this burden to complete the projects before December 2013.

The corporation has estimated that it requires Rs.238 crore to complete eight projects under Urban Infrastructure and Governance (UIG) component of the JNNURM. Of this, the APUFIDC has to release Rs.88 crore, and the corporation has to mobilise Rs.148 crore.

Bank loan

If the Corporation Bank’s loan of Rs.50 crore were to be taken into consideration, the VMC effectively would have to mobilise Rs.98 crore for UIG projects.

Likewise, under Basic Services for Urban Poor (BSUP) of the JNNURM, the VMC requires Rs.119 crore to complete the projects. Of this, the APUFIDC has to release Rs.86 crore. The VMC share will have to mobilise Rs.33 crore, if the dues pending with the government to the tune of Rs.124 crore were to be deducted.

The VMC, under the both heads, UIG and BSUP, will have to mobilise Rs.132 crore. Following suggestion from the higher-ups, the VMC officials have decided to go for Corporation Bank loan. The corporation has urged the government has to arrange this Rs.132 crore for safe closure of the JNNURM projects.

The VMC has taken up 19 projects valued at Rs.1418 crore. Later, the projects’ costs were revised and pegged at Rs. 1,788 crore. The APUFIDC has released Rs. 641 crore towards the Central and the State governments’ share of 70 per cent of the projects cost. The VMC has spent Rs. 260 crore taking the total expenditure to Rs. 900 crore.