Hyderabad: The Telangana government is pinning hopes on new foreign banks to secure loans for its ambitious development projects. While World Bank and Asian Development Bank remain the major foreign lenders, their tough conditions are forcing TS government to look for alternatives.
Proposals are being drafted by the government to facilitate borrowings from the New Development Bank (NDB) at Shanghai, launched by Brics countries recently, besides the Asian Infrastructure Investment Bank (AIIB). Such funds would help the state take up irrigation and infrastructure projects.
The government is in need of nearly Rs 1 lakh crore for irrigation projects alone in the next four years and the government says the Centre has given the green signal to states to take loans from new foreign banks.
World Bank remains the most sought-after among all the foreign lenders due to its lower interest rate -- about 4 per cent. But it is difficult to secure loans from it as it imposes tight conditions on timely execution of projects.
