The State government has given its go-ahead to Kaleshwaram Irrigation Project Corporation Ltd (KIPC) to borrow a term loan of ₹3,000 crore from Punjab National Bank (PNB) for executing Link-II, III and IV-A of the Kaleshwaram Project.
It’s the PNB’s share in the total loan of ₹11,400 crore being borrowed by the KIPC from the consortium of nationalised commercial banks. The PNB loan is expected to give thrust to the pace of works being executed now.
The components that would supply water to SRSP rejuvenation scheme, which the government plans to complete by June next, also form part of the Link-II.
Special Chief Secretary (Irrigation) S.K. Joshi stated in the orders issued on Thursday that the State Government would stand guarantee for repayment of loan taken from the PSU commercial bank covering principal and interest.
The margin money of 30%, including infrastructure development charges, would be met by the State Government through budgetary support.
The loan is being taken for the purpose of part financing of the second phase of the project, which includes Link-II, III and IV-A.
The cost of the second-phase is ₹34,441 crore and the loan would be repaid in 48 quarterly instalments beginning from 2020-21 and the date of commissioning of all components of the second phase is on or before April 1, 2020.
According to the Irrigation Department officials, the Link-II comprises development of water carrying systems from the take-off point in the backwaters of Yellampally project till SRSP Flood Flow Canal with gravity canals, tunnels and two pump houses in Packages 6 to 8.
Link-III comprising Package 9 includes components for carrying water from Mid Manair reservoir through gravity canal, tunnels and pump houses till Amarlabanda tank.
Similarly, Link IV-A comprising Packages 10 to 13 includes components for carrying water from Mid Manair reservoir to Gandhamalla reservoir including the all important Mallannasagar.