VIJAYAWADA: The Water Resources department has intensified efforts in negotiating tie-ups with financial institutions to borrow funds for the execution of major irrigation projects in the State. The department expects to finish floating special purpose vehicles (SPVs) for raising the funds within three weeks.
Though the State government has prepared a list of priority projects to be taken up to effectively use the available water resources, including tapping of floodwater, the availability of funds has become an impediment to moving forward. To bypass the delay due to the financial crunch, the water resources department has decided to set up SPVs to raise the necessary monies for projects including the Rayalaseema drought mitigation project, Uttarandhra Sujala Sravanti and diversion of surplus Godavari water to the Krishna basin.
Negotiations are underway with institutions like the Power Finance Corporation, NABARD and Asian Infrastructure Investment Bank (AIIB). “We are negotiating terms and conditions with financial institutions. Simultaneously, we are getting ready to float the SPVs. Documentation for the same is being done. We expect to complete work on all fronts in three weeks or so,” Special Chief Secretary (Water Resources) Adityanath Das told TNIE.
The department needs at least `1.3 lakh crore over the next five years to complete major projects, and hence, is working on project-specific SPVs. The AIIB has already expressed its interest to finance infrastructure projects as per the State’s priorities. Officials are working on the modalities to tap the funds.