The State Government has decided to float a Special Purpose Vehicle (SPV), Telangana Water Resources Development Corporation, to raise additional financial resources supplementing budgetary allocations for funding the ongoing irrigation projects to realise the target of providing irrigation facility to one crore acres under existing and new projects.
Orders were issued on Thursday appointing Veeramalla Prakash Rao as Director and Chairman of the proposed corporation for a period of three years.
The water resources development corporation would be in addition to another SPV, Kaleshwaram Irrigation Project Corporation, established in October 2015, to mobilise funds for the mega project. The latter is in the advanced stage of raising Rs.7,400 crore loan for the first phase of the project from a consortium of 10 nationalised banks.
Officials of the Irrigation Department stated that the new SPV would raise funds for other projects including Palamuru-Ranga Reddy, Dindi, Pranahita (Tummidihatti), Kanthanapally and other projects.
Special Chief Secretary (Irrigation) S.K. Joshi stated that the State Government would ensure that dedicated and substantial revenue stream would be made available to the SPV so as to make it self-sustainable and also to evolve its own credit worthiness for raising additional resources from the market.
The State Government would pump in a capital corpus of Rs.100 crore to the SPV and it would be invested in such a manner that returns from it would be used to meet the expenditure of the corporation.
