The State government has included Palamuru-Rangareddy Lift Irrigation Scheme (PRLIS) in the mandate of Kaleshwaram Irrigation Project Corporation Ltd (KIPCL), a special purpose vehicle, for mobilisation of financial resources for its early completion.
Instead of setting up a new corporation it has been decided to use the existing special purpose vehicle (SPV) for administrative convenience in raising funds for Palamuru-Rangareddy project. The KIPCL SPV was set up to plan, appraise, seek financial support, approve release funds, implement, manage, operate, monitor and evaluate Kaleshwaram project.
The decision to link PRLIS with KIPCL for the purpose of borrowing funds was taken on the suggestion of Engineer-in-Chief made to the government through two letters dated January 10 and April 8 this year.
Additional mandate
In the orders issued on Saturday, Chief Secretary S.K. Joshi, who is also holding charge as Special Chief Secretary (Irrigation), stated that PRLIS has been included as an additional mandate of KIPCL and the Chief Engineer of PRILS is nominated as one of the Directors of the SPV to oversee works related to PRLIS vertical and to coordinate with the financial institutions and banks to tie-up in consultation with the Managing Director of KIPCL, subject to the Fiscal Responsibility and Budget Management (FRBM) limits.
Accordingly, the State government would enter into an agreement with KIPCL for the purpose. Lease and license agreements whereby the assets proposed to be created under PRLIS would be transferred in the name of SPV and they would be valued on market value basis.
Development agreement
Besides, a development agreement whereby the different projects as separate vertical divisions would be developed and maintained by the SPV would also be entered into.
The government would also enter into an agreement with KIPCL to transfer interest charged on loans and repayment of principal, as and when it is due, with regard to PRLIS.
