GHMC funds await approval by Telangana government
The loan amount can be released once the government approves the file, said a senior officer from the GHMC revenue department.
Hyderabad: The GHMC has written to the state government for approval to float bonds worth Rs 1,000 crore and borrow Rs 2,500 crore through term loans from financial institutions. These are to be made on the basis of the corporation’s credit rating and financial strength.
The money will be spent on the Strategic Road Development Plan, which includes flyovers, junction improvement and corridor development as well as white-topped roads. It will also fund the major project of widening nalas.
The file seeking approval to float the bonds is stuck with the municipal administration and urban development ministry.
The loan amount can be released once the government approves the file, said a senior officer from the GHMC revenue department.
The corporation is carrying out civic engineering works from general funds. It needs huge funding to taking up various projects including the two-bedroom housing scheme.
Before initiating the proposal, the GHMC got its credit rating assessed by two agencies — ICRA and CARE. Initially, ICRA had given an ‘A’ (low credit risk) rating and CARE ‘AA’ (very low credit risk), based on the civic body's financial capability, properties and other issues.
