AMC to mortgage 15 properties for obtaining loan of Rs 250 crore

Aurangabad, Feb 16:

The Aurangabad Municipal Corporation (AMC) has geared up to obtain a loan of Rs 250 crore from a private nationalised bank so as to invest its share of Rs 182 crore in the Smart City Mission. The AMC will be mortgaging 15 primely located properties with the bank against the loan.

Earlier, the development works valuing Rs 1,000 crore were approved under the Mission. As per the funding schedule, the Centre will share Rs 500 crore, while Rs 250 crore each will be share of the State and the AMC. So far, the Aurangabad Smart City Development Corporation Limited (ASCDCL) has received Rs 441 crore funds from the Centre (Rs 294 cr) and the State (Rs 147 cr). On other hand, the AMC has deposited Rs 68 crore only and has to contribute the remaining Rs 182 crore, soon.

The AMC has initiated talks with private nationalised banks to obtain a loan of Rs 250 crore. The loan will be taken from the bank offering a low rate of interest. It has prepared a list of 15 properties which will be handed over to the bank after evaluation along with other necessary documents. If all goes well, the loan could be approved in the last week of February, said the sources.