Hyderabad, January 19: Works for the Phase-I of Godavari Drinking Water project are going to be delayed further as the government rejected sanction of Rs 1,000 crore.
Instead, it has directed the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) to approach the Housing and Urban Development Corporation Ltd (HUDCO) for seeking loans by mortgaging the latter’s prime properties, for which government has agreed to give assurance.
In a meeting with chief minister N Kiran Kumar Reddy on Tuesday, the Water Board sought state support to provide funds for the Godavari project. Cost of the project is estimated at `3,375 crore for supplying 10 TMC water. However, instead of granting funds, the state government directed Water Board officials to approach HUDCO, for seeking `1,000 crore loan by mortgaging their properties as counter guarantee.
HMWS&SB officials told Express that work on the project has been hit due to paucity of funds for the second year in a row. The state government has allocated only `250 crore for the project, as against a requirement of over `960 crore. Last year, it had also allocated `250 crore. The project had to be completed by December 2011 but till date not even five percent has been completed. Officials feel it would take another five years to complete it, based on availability of funds.
–Agencies