Hyderabad: The Kaleshwaram Irrigation Project Company Limited (KIPCL) secured grading of ‘A-category’ from the Centre's Rural Electrification Corporation (REC) based on its financials and performance.
The KIPCL runs Kaleshwaram lift irrigation project. The REC is the major lender to KIPCL. REC general manager Ch. V. Lakshmanacharyulu sent a communication to the state government to this effect on Saturday.
The state government constituted KIPCL in 2016 to raise funds for the construction of Kaleshwaram project, the world’s largest lift irrigation project. The project is being built at a cost of nearly Rs 1 lakh crore. The Kaleshwaram project (KIPCL) already secured over Rs 50,000 crore loans from banks and other financial institutions.
The REC extended Rs 14,000 crore loans. The task of raising loans for Palamuru-Rangareddy lift irrigation scheme was also entrusted to KIPCL later.
“The corporation has been paying the interest and principal amounts of the banks and financial institutions promptly on a monthly and quarterly basis. The REC has given the A-category grading based on the financial and other performances,” said Rajat Kumar, special chief secretary, irrigation, who is also the chairman of the KIPCL, in a press release.
The corporation signed agreements with a consortium of banks to raise loans for the project which include the Union Bank of India consortium, Punjab National Bank consortium, Bank of Baroda and financial institutions, namely,Power Finance Corporation Ltd, REC Ltd and Nabard.
The corporation has since been involved in developing, engineering, financing
and executing the Kaleshwaram project.
The project is aimed to irrigate 37 lakh acres and provide 10 tmcft drinking water for several villages and 30 tmcft drinking water for twin cities of Hyderabad and Secunderabad apart from providing 16 tmcft of water for industrial usage.
