Hyderabad: Due to scarcity, the Telangana Urban Finance and Infrastructure Corporation (TUFIDC) is unable to release funds to municipalities in the state. As a result, many vital proposals from municipalities are pending with the TUFIDC. The state government had given permission to TUFIDC to obtain a Rs 2,000-crore loan from financial institutions to undertake infrastructure projects in municipalities. Vijaya Bank has sanctioned Rs 500 crore to TUFIDC. The talks are on to fix the interest rate along with a counter guarantee from the state government.
About 17 municipalities have sought funds to the tune of Rs 76 crore for infrastructure projects. The Siddipet municipality has requested the TUFIDC to sanction Rs 109.40 crore to undertake 306 km underground sewerage works. The TUFIDC has asked the Siddipet municipality commissioner to submit the cash flow statement, repayment period and the recoveries from the project. The Karimnagar, Nizamabad and Miryalaguda municipalities have also sent proposals on underground drainage projects. But, a cash-starved TUFIDC cannot honour its commitment.
So far, the TUFIDC has sanctioned Rs 2.30 crore to Vikarabad, Rs 2.33 crore to Nalgonda and Rs 4.45 crore to Miryalaguda municipalities to undertake underground drainage works. But the funds are yet to be released by the finance department.
