VIJAYAWADA: For taking up various drinking water supply projects in four districts, the Andhra Pradesh Drinking Water Supply Corporation (APDWSC) will borrow Rs 2,500 crore from Punjab and Sind Bank, Canara Bank and Vijaya Bank. The projects will be constructed in Krishna, West Godavari, East Godavari and Srikakulam districts.
The APDWSC will borrow Rs 1,000 crore each from Punjab and Sind Bank and Vijaya Bank and Rs 500 crore from Canara Bank. Principal Secretary of Panchayat Raj and Rural Development, KS Jawahar Reddy, recently issued a government order approving the proposal for borrowing money, mortgaging the project assets and finalising the agreements with the banks for tapping the funds.
It may be recalled that the State government has decided to take up drinking water supply projects in eight districts including Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur and Prakasam at an estimated cost of Rs 6,330 crore. While the State government would bear Rs1,000 crore, the remaining amount would be loan component. The officials have already sought the approval of the government to borrow Rs 5,330 crore. The State government has given a guarantee to repayment of the loan and interest as well.
“In the first phase, the APDWSC has decided to take up the projects in four districts. The project aims at supplying drinking water of 70 litres per capita per day in all rural areas,” an official said.