Published On:September 5 2015
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HUDCO to finance Nellore’s underground drainage project.
The Nellore Municipal Corporation’s (NMC’s) longstanding plan to take up an underground drainage project in the city may get some momentum with the HUDCO sanctioning a loan for it. With the State Government also providing a counter-guarantee, the Rs.1,100-crore project looks set for takeoff at last.
The project was mooted to ensure proper removal of sewage and domestic waste from the city’s localities. Lack of underground drainage has left channels like the Sarvepalli Canal in a bad shape with garbage obstructing the flow of water.
With Union Urban Development Minister M. Venkaiah Naidu intervening, the HUDCO stepped forward to sanction a loan for the project. The Central Government referred the proposal to the State Government for a counter guarantee, which was duly given after Chief Minister Chandrababu Naidu consulted the city’s leaders.
“The project is crucial for the city, which has been badly neglected for over 10 years,” said mayor Abdul Aziz.
Mr. Aziz told The Hindu that the HUDCO’s interest rate is expected to be 14-15 per cent. To ease the interest burden, the NMC plans to turn to the Japan International Cooperation Agency (JICA) for funding.