CSMC signs agreement for ₹822 crore loan

Lokmat News Network

Chhatrapati Sambhajinagar:

A loan of ₹822 crore will be taken for the city’s new water supply scheme. All necessary documents had already been submitted by the Chhatrapati Sambhajinagar Municipal Corporation (CSMC), and on Thursday, municipal administrator G Sreekanth signed the loan agreement in Mumbai with the Maharashtra Urban Infrastructure Development Company (MUIDCL). The first installment expected to be over ₹100 crore is likely to be received within the next few days. The loan amount will be drawn in phases, depending on the progress of the project.

The ₹2,740-crore water supply scheme is designed to ensure that the city does not face water shortages until the year 2050. The Maharashtra Jeevan Pradhikaran (MJP) has assured that the first phase of the project will be completed by the end of December.

The funding pattern for the project is as follows: 25 per cent by the Central Government, 45 pc by the State Government, and 30 pc by the CSMC. While both the Centre and State have released their shares, the corporation’s ₹822 crore portion will be raised through this loan, as suggested and approved by the state government.

The loan process, which had been ongoing for about a year, has now been finalised. The agreement signing ceremony was attended by MUIDCL Chief Operations Officer Sunayana Kumbhare, Tushar Joshi, and from the CSMC — chief finance and accounts officer Santosh Wahule, executive engineer (water supply) Kiran Dhande, accounts officer Sanjay Kolte, and clerk Abhishek Dhekale.

Monthly installment of ₹9.80 crore

The CSMC has been given 20 years to repay the ₹822 crore loan. Installments will begin after two years, during which the corporation will pay only interest. Interest will be charged solely on the amount drawn from the loan.

Improving the CSMC financial condition is essential

The municipal commissioner G Sreekanth said,“The ₹2,740-crore water supply scheme must be completed within the deadline set by Chief Minister Devendra Fadnavis. The loan process has now been completed accordingly. However, the CSMC must improve its financial condition to manage future loan repayments. Strategic financial decisions will be taken in the coming period.”