Hyderabad

GHMC gets ₹2,500-cr loan for SRDP

Work is on at a brisk pace for the underpass near Mindspace junction under Strategic Road Development Plan.

Work is on at a brisk pace for the underpass near Mindspace junction under Strategic Road Development Plan.  

The loan has to be repaid in 15 years at an interest rate of 8.65%

Various projects of road development across the city under Strategic Road Development Plan (SRDP) may speed up now, as the much-awaited rupee term loan of ₹2,500 crore has been sanctioned for the same.

GHMC Commissioner D. S. Lokesh Kumar confirmed that the loan had been sanctioned by the State Bank of India with an interest rate of 8.65%, payable over 15 years.

The GHMC has listed 24 components of the SRDP under the loan, including the ongoing ones at various locations, which had slowed down for lack of fund flow.

The corporation cannot avail the whole amount at once as in the case of bonds, but will get phase-wise release of funds paid directly to the agencies, based on the progress of the works, and the bills raised thereof.

That way, the GHMC can save on the interest accumulation over the idle funds, officials said.

This is the first time that the GHMC is exploring the loan option from the funding plan sanctioned by the government, after going for bond issue thrice.

Of the ₹1000 crore aimed to be raised through bond issue, the corporation has been able to raise ₹495 crore so far in three instalments.

In the latest instance, only ₹100 crore could be raised through the electronic bidding platform of the Bombay Stock Exchange, against the ₹300 crore target, as the coupon rate was very high at 10.23%, moderated to around 9% after ₹13 crore incentive by the Central government.

The rupee term loan is a shot in the arm for the corporation, thus far facing difficulties even to pay for property acquisition, which constitutes a sizeable component of the prestigious project.

Several properties are yet to be acquired on stretches such as Jubilee Hills, Uppal, Amberpet, L. B. Nagar, Bairamalguda, Bala Nagar, and Bahadurpura, the compensation for which could amount to ₹800 crore.

The funds could also be useful for the upcoming projects which could not be grounded due to lack of funds even after tenders are finalised.

They include the elevated corridors between Indira Park and VST, between Owaisi Hospital and Nalgonda Crossroads, and between zoo park and Aramghar, besides the flyover between Rethibowli and Nanal Nagar.

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Printable version | Jul 14, 2020 4:36:10 AM | https://www.thehindu.com/news/cities/Hyderabad/2500-crore-loan-sanctioned-for-srdp/article30506448.ece

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