Hyderabad: The State Government today accorded permission to the Managing Director, Telangana Drinking Water Supply Corporation Limited to borrow Rs 440 crore from Indian Bank as its share in the Vijaya Bank-led consortium against the total debt requirement of Rs 1,940.00 crore for execution of the “Mission Bhagiratha” for providing drinking water to Godavari-Kothagudem, Dummugudem Segment in Khammam District at an estimated project cost of Rs 2427 crore.
As per the order, the Government of Telangana will stand as guarantee for repayment of loan taken from Indian Bank covering principal and interest through Vijaya Bank-led consortium. The State margin money (20% of the project cost) of Rs 112 crore will be met by the government through budgetary support.
It may be mentioned here that Telangana Drinking Water Supply Corporation Ltd. (TDWSCL) was constituted in 2015 to execute and maintain the Mission Bhagiratha. Later, the Vijaya Bank consortium had agreed for induction of Indian Bank in the Consortium and the Indian Bank sanctioned Rs 440-crore term loan for balance tie-up of total requirement of Rs 1940 crore out of the total project cost of Rs.2427 crores to Mission Bhagiratha covering 22 mandals -- northern part of the Khammam district.