HYDERABAD: The state government has accorded permission for the Telangana Urban Finance and Infrastructure Development Corporation (TUFIDC) to avail a Rs 1,000 crore loan from the Housing and Urban Development Corporation Limited (HUDCO) to take up infrastructure projects in ULBs. The state would provide guarantee for this loan.
MAUD Principal Secretary Dana Kishore issued orders to this effect on Tuesday.
TUFIDC V-C and MD has informed the government that permission has been accorded to the TUFIDC for obtaining loans up to Rs 7,000 crore from financial institutions to take up infrastructure projects in ULBs. It was also informed that the HUDCO has sanctioned a loan of Rs 1,000 crore. With this, TUFIDC has requested the government to avail loan from HUDCO.
As per the conditions placed by HUDCO, the state should provide guarantee for Rs 1,000 crore and budgetary provision every year for repayment of principal plus interest due against HUDCO loan.