Lokmat News Network
Chhatrapati Sambhajinagar:
The municipal corporation will have to contribute a share of ₹822 crore in the new water supply scheme. To raise this amount, the State Government has approved a loan from Hudco. The loan agreement documents have already been submitted by the municipal corporation to Hudco, and the loan will be disbursed soon after the agreement is finalised. Instead of taking the full amount at once, the corporation will borrow the funds in phases. Interest will have to be paid monthly on the borrowed amount. The loan repayment will begin from November 2027, informed the municipal corporation administrator G Sreekanth.
Water for the city till 2050
Under this project, sufficient water to meet the city’s daily needs will be brought from Jayakwadi Dam, ensuring supply until the year 2050. The new water supply scheme, costing ₹2,740 crore, is currently about 80 per cent complete. The first phase is expected to be finished by the end of December, which will bring an additional 200 MLD of water to the city. This scheme is being implemented under the Central Government’s AMRUT 2.0 (Atal Mission for Rejuvenation and Urban Transformation). The municipal corporation is required to contribute 30 percent of the total cost, which amounts to ₹822 crore.
Loan repayment over 10 years
After the municipal corporation submitted its proposal to raise ₹822 crore, the State Government approved Hudco as the lending agency. All required documents for the loan have been submitted to Hudco. The loan is to be repaid over a period of 10 years, with a monthly installment of ₹9.80 crore, starting from November 2027.
Interest to be paid first
The corporation will not take the full ₹822 crore at once. Instead, loans will be taken in installments of ₹100 crore. After the first ₹100 crore is borrowed, an interest payment of ₹90 lakh will be due. When another ₹100 crore is borrowed, the interest will increase to ₹1.80 crore, and so on, explained the administrator G Sreekanth.