
HYDERABAD: The state government continues to rely on Housing and Urban Development Corporation (HUDCO) loans for executing various projects.
From December 2023, when the Congress formed the government in the state, and till now, the HUDCO sanctioned loans to the tune of Rs 12,677 crore for 12 projects, including Rs 3,000 crore for construction of Indiramma houses, Rs 2,700 crore for acquiring land for Regional Ring Road (northern stretch), Rs 2,224 crore for Godavari water supply to Hyderabad and rejuvenation of Osmansagar and Himayatsagar reservoirs.
Due to the financial constraints it is facing and because of low interest rates, the state government is leaning towards the financing agencies of the Union government as well as the multilateral agencies. Sources said that many agencies were giving loans to Telangana for implementing various projects because its “repayment history is good”.
Of all the loans sanctioned by the HUDCO, the highest was Rs 3,000 crore sanctioned for the construction of houses under Indiaramma Housing scheme to Telangana Housing Board, followed by Rs 2,700 crore loan to Telangana Road Development Corporation for acquiring land for Hyderabad RRR project.
The HUDCO also sanctioned Rs 2,224 crore loan for executing the Phase 2 of the Godavari drinking water supply project and rejuvenation of Osmansagar and Himayatsagar.
Of the total 12 loans sanctioned, loan amount for nine projects are yet to be released. Sources in the government said that all the undisbursed loans are in documentation process.
HUDCO, is a public sector undertking of Ministry of Housing and Urban Development, provides financial assistance on loan basis for housing and infrastructure projects like Roads, drainage, water supply, sewerage, area development, airports,power, metro and others. The interest rates range from 9.2 per cent to 10.5 per cent per annum for loans sanctioned to various categories of projects. For all loans state government guarantee is required