HYDERABAD: Minister for municipal administration and urban development K. T. Rama Rao informed the Legislative Assembly that the state government had been taking up Strategic Road Development Programme (SRDP) works under the Greater Hyderabad Municipal Corporation (GHMC) limits at a cost of Rs 5,900 crore to improve roads, construct flyovers, bridges, link roads and underpasses to reduce traffic congestion in the city, which was facing a gridlock like situation due to increasing vehicular traffic day after day.
Speaking in the House on Monday during the Question Hour, Rao said funds were being mobilised through loans but asked the Opposition parties not to see this as a debt burden but instead see it as an investment in the future to create better infrastructure in the city.
He stated that better infrastructure facilities would in turn boost the economy with transit-oriented development and create jobs and sustainable livelihood opportunities for all.
"We have taken in-principle approval to secure Rs 5,900 crore loan from the State Bank of India with the guarantee of the state government. We will incur Rs 296 crore expenditure towards debt servicing every year. This loan is backed by the state government. There is no need to worry about the GHMC's financial health as the state government will repay the loan if the GHMC can't pay," Rao explained.
He informed the House that the government had completed 22 SRDP works worth Rs 1,946 crore in the first phase and another 24 works were under various stages in the ongoing second phase.
The major expenditure was being incurred on land acquisition to undertake various projects, Rao said, adding that to overcome this issue, the government had come out with TDR (Transfer Development Rights) and so far issued 807 TDR certificates valued at Rs 3,095 crore. He said it had saved the GHMC of Rs 3,000 crore while it also helped the government to save around Rs 1,500 crore towards cash compensation as per the new Land Acquisition Act.
