Hyderabad, February 23: With no funds to take up development projects, the Greater Hyderabad Municipal Corporation (GHMC) will procure loans of Rs 600 crore from various national banks and financial institutions.
The Municipal Administration and Urban Development (MAUD) department has accorded permission to the GHMC for procuring loans, subject to the condition that there will be no government guarantee and repayment would have to be made from the corporation’s coffers.
The loans are needed to meet the GHMC’s share for projects taken up under the JNNURM.
The GHMC Standing Committee in August 2010 gave green signal to the GHMC commissioner Sameer Sharma to avail loans from national banks and financial institutions, who charge less interest rates.
After taking approval, Sharma requested the government to accord permission to obtain loans from financial institutions or banks through competitive bidding process, pending approval of the corporation.
The government after careful examination, has accorded permission to procure loans of Rs 600 crore.
GHMC is also identifying some colonies where works are needed to improve the infrastructure. It will take the help of private developers for the works.
–Agencies