State okays AMC proposal to obtain loan of Rs 250 crore

Lokmat News Network

Aurangabad, March 10:

The state government today has granted conditional permission to Aurangabad Municipal Corporation (AMC) to obtain a loan of Rs 250 crore for investing its share in the Smart City Mission.

The State Urban Development Department (UDD) has laid eight parameters and told to obtain loan as per the requirement.

The deputy secretary Vidya Hampayya approved the proposal and clarified that the approval should not be considered as an assurance of repaying the loan.

The AMC and the financial institute have been directed to send the mutual agreement copy mentioning the terms and condition to the UDD. Meanwhile, the AMC administrator has been given the responsibility to plan repayment of loan. The AMC should think before signing the mutual agreement whether it would be able to repay the huge loan and do not utilise the money for other purpose, the order stated.

It may be noted that works of valuing Rs 1000 crore have been planned for implementation under Smart City Mission. Of which, the Central Government will aid Rs 500 crore, while the state government and the AMC have to invest share of Rs 250 crore each. So far, the Central Government has released Rs 294 crore and the State Government has released Rs 147 crore, but the AMC has Rs 68 crore only (out of Rs 250 crore).

The worries of the AMC got increased when the Centre clarified that it will release further instalment only after AMC invest its share in the Mission. The cash-strapped AMC decided to obtain loan and the proposal seeking permission from the state government was sent for approval.