With getting funds for the Rs. 1900-crore massive Godavari pipeline project under JNNURM ruled out, GVMC is now seeking assistance from Hudco.
Finance will be sought on the lines of Krishna water project Phase III under which 90 per cent funds are provided as loan with the state government making budgetary allocation and standing counter guarantee. The remaining 10 per cent is sanctioned by the State Government itself.
Taking up the pipeline is seen as one of the major solutions to avoid pilferage and leakages and increase the present supply from the Godavari and Yeleru reservoirs from the present 56 mgd to almost 90 mgd. "Presently we are unable to meet the standard demand of 130 l per capita supply or meet the demand of the industry, particularly the steel plant, that is ready to pay," Municipal Commissioner M V Satyanarayana said.
He told reporters on Monday that a project report was ready and a team from Hudco visited the city and recommended it to the state government.
Now it is for the government and the all-important Finance department to accord sanction.
Mr. Satyanarayana said once started the project would take two years for completion.
While the Neelam cyclone saved water woes this summer, a lean year will push GVMC hard for supply. Augmenting supply from existing sources is one of the major options it has.