Hudco Extends Rs 1,000-Cr To MSRDC, Maharashtra

Mumbai, December 22: | Updated: Dec 23 2002, 05:30am hrs
Housing and Urban Development Corporation (Hudco) has sanctioned over Rs 1,000 crore loan to the cash-starved Maharashtra and its State Road Development Corporation (MSRDC). The loan will be have a 10-15 years repayment period, and will attract an interest rate of 9.25-11 per cent.

State chief secretary Ajit Nimbalkar told FE that Hudco has sanctioned in all Rs 800 crore to MSRDC. Of which, it would use Rs 400 crore towards redemption of bonds by December 31. The MSRDC would need a total of Rs 800 crore for this purpose. The balance Rs 400 crore would be provided by the state after going in for a take out financing from LIC.

Mr Nimbalkar said the Hudco board has cleared these proposals on Friday. The board has also sanctioned a line of credit of Rs 400 crore for its ongoing projects comprising Satara-Kagal, Nagpur-Aurangabad and integrated rural development projects. A tripartite pact will be inked among the state, MSRDC and Hudco for the proposed loan arrangement.

Furthermore, Mr Nimbalkar said Hudco has also sanctioned loan of Rs 250 crore for the ambitious Worli-Bandra Sea link project and another Rs 215 crore for the construction of road and flyovers in Pune. The chief secretary said Hudco has also cleared around Rs 150 crore for the Godavari Irrigation Development Corporation and Rs 90 crore to Maharashtra Jeevan Pradhikaran.

Mr Nimbalkar admitted that with HUDCOs decision the state government and MSRDC would get a much needed reprieve.