Chief Minister tentatively okayed the proposal, says Commissioner

The Vijayawada Municipal Corporation (VMC) is proposing to issue bonds worth Rs.250 crore to maintain momentum in completion of developmental works taken up Jawaharlal Nehru National Urban Renewal Mission (JNNURM) programme.

The corporation has fixed assets, including complexes and open lands, worth of Rs. 6,000 crore. The CRISIL and CARE, rating agencies, will give their ratings after assessing the assets, receipts, expenditure etc of the corporation. Chief Minister N. Kiran Kumar Reddy has ‘tentatively okayed’ the proposal, according to Municipal Commissioner Md. Abdul Azeem.

Though the VMC is eligible to take a loan of Rs.400 crore based on the present rating ‘A’, the corporation has decided to borrow only Rs. 250 crore.

The balance sheets of corporation were being prepared and likely to be completed by the month-end, he said, adding, the ICICI bank would issue the bonds on behalf of the VMC.

Tourism projects

The VMC has plans to develop surreal tourism and white water tourism.

As part of it, the canal bunds would be beautified with replicas of monuments and statues, which have historical importance (India and European countries), would be selected, he said, adding Rs. 39 crore would require for the projects, he said.

Referring to drinking water requirements of hoteliers etc, the Commissioner said an RO (reverse osmosis) plant would be set up at a cost of about Rs. 75 lakh.

The plant is estimated to fetch Rs. 20 crore to Rs. 30 crore per annum.

About 30 lakh water bottles would have to be sold every month.

The receipts from the water plant would be used to repay the loans borrowed from the banks and half yearly returns to the subscribers of bonds, he said, adding a meeting with hoteliers’ bodies would be convened on December 23.

Referring to the Bus Rapid Transit System (BRTS) project, Mr. Azeem said a trial run would be conducted shortly to assess the operational issues.

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