CRDA seeks nod for Rs.7,500-cr. HUDCO loan

CRDA has sought administrative sanction from the State government to avail a loan of Rs.7,500 crore from HUDCO for development of housing and infrastructure in the capital city and capital region. The CRDA Commissioner represented to the government that HUDCO and the APCRDA entered into a MoU for a loan of Rs. 7,500 crore. The CRDA apparently explored the opportunities to raise the loan at competitive interest rate, but found that the HUDCO’s offer was the best. While other lending agencies quoted interest rate of 11 to 12 per cent a year, CRDA was confident of securing the HUDCO loan at 9.65 per cent. Of this, the first tranche of the loan will be Rs. 1,306.83 crore and the government has to contribute 10 per cent of the amount, Rs.130.68 crore.