GHMC moots borrowing ₹2,500 crore for SRDP

GHMC workers clearing the water at MS Maktha in the city on Friday. Nagara Gopal

GHMC workers clearing the water at MS Maktha in the city on Friday. Nagara Gopal  

Proposal to appoint SBI Capital Markets as loan arranger cleared

GHMC has finally decided to explore the option of rupee term loan in order to complete the ongoing projects under the Strategic Road Development Plan (SRDP).

After failing to evoke interest from investors for its bond issue during a recent attempt, the corporation has proposed to avail ₹2,500 crore through the rupee term loan.

The Standing Committee, during its Thursday meeting, cleared a proposal to appoint SBI Capital Markets as the arranger for the loan, with 0.1 per cent fee.

So far, the corporation could raise ₹495 crore from three instances of bond issue for the SRDP projects.

While the first two attempts made last year had yielded ₹395 crore, the GHMC was able to generate only ₹100 crore as against the expected ₹305 crore in its third tryst with the stock market.

Land acquisition could not be completed on several stretches where the SRDP works are on, owing to paucity of funds.

The term loan is expected to pave way for speedy completion of the project.

The standing committee has cleared a total of 17 proposals, including a few to hand over central medians and traffic islands in the West Zone to private entities for maintenance under corporate social responsibility.

Proposals to lay sewerage box drain between Ibrahimbagh to Pedda Cheruvu with an expenditure of ₹3.9 crore, and to acquire 80 properties for road widening between Nizampet and Bachupally Kaman via Nizampet Crossroads have been accepted.

Another proposal has been cleared for allotment of 22,500 square metres of open space in Fathullaguda, Hayatnagar circle to the Disaster Response Force for setting up its yard.

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Printable version | Jul 5, 2020 5:32:23 AM | https://www.thehindu.com/news/cities/Hyderabad/ghmc-moots-borrowing-2500-crore-for-srdp/article29729229.ece

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