Telangana state govt to seek Rs 3,000 crore HUDCO loan for Regional Ring Road project

According to official estimates, the cost of construction of road is around Rs 31,000 cr.
Telangana state govt to seek Rs 3,000 crore HUDCO loan for Regional Ring Road project

HYDERABAD : Considering the construction of Regional Ring Road (RRR) is top priority, the state government is speeding up mobilisation of funds. It is contemplating raising loans from financial institutions.

The proposed RRR is for about 350 kilometres. The government has decided to construct it in two phases. The northern part of RRR is from Sangareddy to Choutuppal and the southern part is from Choutuppal to Sangareddy.

The officials have estimated that the construction of this project will cost Rs 31,000 crore.

In the first phase, the government will construct the northern part with an estimated cost of Rs 15,000 crore. It is for about 161 kilometres, requiring 1,940 hectares of land.

The officials said that a sum of Rs 5,000 crore is needed for payment of compensation to acquire land. This sum is the 50 percent share of the state government.

Sources said that of this sum, the state government has proposed to seek Rs 3,000 crore from Housing and Urban Development Corporation (HUDCO), which is under the Union Urban Development Ministry.

The state government should give a guarantee in order to get loan approval from HUDCO, they added.

Recently HUDCO had approved the loan to a similar project in Maharashtra. It approved Rs 5,500 crore for the construction of Pune Regional Ring Road.

Meanwhile, it is said that National Highways Authority of India (NHAI) is preparing the plans to call for tenders for the construction of the northern part of Telangana RRR.

First phase

In the first phase, the government will construct the northern part of the RRR with an estimated cost of Rs 15,000 crore. It is for about 161 kilometers, requiring 1,940 hectares of land. The officials said that a sum of Rs 5,000 crore is needed for payment of compensation to acquire land. This sum is the 50% share of the state government. Sources said that of this sum, the government has proposed to seek Rs 3,000 crore from HUDCO, which is under the Union Urban Development Ministry.

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