Cabinet okays Rs822cr loan for Sambhajinagar water supply project
Chhatrapati Sambhajinagar: The state cabinet approved a loan of Rs822.2 crore on Tuesday for the new water supply project in Chhatrapati Sambhajinagar, following more than a year of assurances from various politicians, including chief minister Devendra Fadnavis.
The funds, representing the share of the Chhatrapati Sambhajinagar Municipal Corporation (CSMC) in the Rs2,740 crore project, will be provided by the Housing and Urban Development Corporation Limited (Hudco).
In May, Fadnavis announced govt would cover the additional interest costs for the "soft loan" extended to the local civic body. The water supply project, valued at Rs2,740 crore, falls under the second phase of the AMRIT scheme of the Centre.
The state contributes 45% of the project cost, while the Centre and CSMC bear 25% and 30%, respectively.
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The local civic body reported an inability to provide its share due to financial constraints, prompting state govt to supply the necessary funding through a loan. Cabinet minister and local BJP MLA Atul Save said the HUDCO loan would feature a minimum interest rate and the longest possible tenure.
"The CM, during a special review meeting chaired for the new water supply project for Chhatrapati Sambhajinagar in May, assured all possible support for the project. The cabinet nod for the Rs822.2 crore loan would ensure smooth funding for the project," Save told TOI. Although the project had a deadline of March 2024, Save said efforts continue to commission it by Oct.
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