VIJAYAWADA: The State Water Resources Department has submitted proposals to the Power Finance Corporation (PFC) Ltd and the Rural Electrification Corporation (REC) Ltd to raise funds for the implementation of the Rayalaseema Drought Mitigation Projects.
The proposals have been submitted for Rs 12,500 crore for the electro mechanical works of the projects, while the total cost of all the projects proposed under it is estimated to be Rs 40,000 crore.
“We have submitted proposals to the PFC and the REC, seeking financial assistance for the implementation of the Rayalaseema Drought Mitigation Projects. Special Chief Secretary (Water Resources) Adityanath Das met the heads of both the corporations on July 29 and 30, and discussed the fund mobilisation proposals. We are awaiting their response,” a senior official told TNIE.
It is learnt that the officials had also submitted loan proposals to both the corporations for other irrigation projects as well.
They are also set to approach other development agencies such as the World Bank and the National Bank for Agriculture and Rural Development (NABARD), besides the commercial banks, to finalise the funding for the projects, which are in the priority list of the State government.
In fact, the Special Chief Secretary had already held a meeting with the bankers for pooling necessary funds in the first half of July. A second round of meeting with their higher-ups is expected to be held shortly.
It may be recalled that the government has proposed 27 projects, which include enhancing canal capacities and adding new schemes to draw water from Srisailam, as part of the Rayalaseema Drought Mitigation Projects.
The projects are envisaged with an objective to tap the required water for the parched Rayalaseema within a period of 30 to 40 days as against the earlier 120 days.
A Special Purpose Vehicle (SPV) was also formed to facilitate funds through loans from the financial institutions and it even has the option to tap the public markets.
It is through the SPV, the proposals for raising funds for the electro mechanical works of the Rayalaseema Drought Mitigation Projects were submitted recently.
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