A green signal has been given to the loan of ₹822 crore to Chhatrapati Sambhajinagar Municipal Corporation (CSMC) as its share for the ambitious water supply scheme for the city worth ₹2,740 crore. CSMC commissioner and administrator G Sreekanth signed an agreement in this regard with the Maharashtra Urban Infrastructure Development Company in Mumbai on Thursday.
The work of the new water supply scheme for the city, worth ₹2,740 crore, is being accomplished through the Amrut-2 scheme. Maharashtra Jeevan Pradhikaran has appointed GVPR Company, Hyderabad, as the contractor for the scheme, and the work is presently in its final stages. In this project, the central government will provide a 25% share, the state government 45%, and CSMC 30%. The administration had made efforts for the corporation’s share to be borne by the state government. However, the state government decided to provide this amount as a loan to the municipal corporation. Hence, the loan process had been underway for the past eight to nine months.
Sreekanth signed an agreement regarding the loan process with the Maharashtra Urban Infrastructure Development Company on Thursday. The company’s Chief Operating Officer Sunayana Kumbhare, Tejas Joshi, Accounts Officer Sanjay Kolte, Water Supply Department Executive Engineer Kiran Dhande, Abhishek Dhekle, Bank of Maharashtra Branch Manager Ankush Bhantalwad, and others were present.
CSMC has been given a period of 20 years to repay the loan amounting to ₹822 crore. The recovery of the instalments will start after two years, but the corporation will have to pay the interest during this period.
Sreekanth said Chief Minister Devendra Fadnavis has given a deadline for the completion of the water supply project. “The most important hurdle in the water supply scheme was removed after the loan process. It is important that the financial condition of the corporation improves to ensure repayment of the loan amount. The decision in this regard will be taken in the coming days,” he said.
