Andhra govt in talks with 11 banks to mop up funds for Rayalaseema projects 

Besides seeking funding from commercial banks, the department has also planned to get loans from development banks as well. 
Rayalaseema Drought Mitigation Projects
Rayalaseema Drought Mitigation Projects

VIJAYAWADA: The Water Resources department has expedited the process of finalising tie-ups with financial institutions to mop up funds for executing the Rayalaseema Drought Mitigation Projects (RDMP). The department, in coordination with the Finance department, is in talks with 11 institutions and is expected to seal the deal in the next few weeks.

After the State Cabinet gave nod for taking up 14 projects under the drought mitigation projects programme, under which 28 projects have been prioritised at an estimated cost of `39,980 crore, the department took forward the talks with commercial banks and other financial institutions. 

According to information, the discussions with commercial banks for securing finances through a consortium of banks, on the lines as the Kaleshwaram Project, are at an advanced stage. “We are in talks with 11 banks. The finance department has taken the lead in the negotiations. The offers from the banks are expected shortly and we will examine them to finalise the best ones,” a senior official explained.

Besides seeking funding from commercial banks, the department has also planned to get loans from development banks as well. The officials had earlier planned to approach the Asian Development Bank (ADB) for `5,000 crore and the World Bank for another `5,000 crore. The department is preparing a consolidated detailed project report (DPR) for getting funds from the development banks. 

Special Chief Secretary (Water Resources) Adityanath Das had also visited New Delhi in July-end and submitted proposals worth Rs 11,000 crore to Rural Electrification Corporation Ltd and Power Finance Corporation Ltd for electro-mechanical works of the projects under the Rayalaseema Drought Mitigation Projects. 

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