HUDCO to fund Krishna water scheme

By Our Special Correspondent

HYDERABAD, SEPT. 25. HUDCO, the Central financial institution for urban infrastructure schemes, has agreed in principle to fund the Rs. 800-crore scheme for supplying drinking water from the Krishna to the twin cities.

The water scheme envisages drawal of 90 MGD of water from Akkampally reservoir in Nalgonda district in two equal phases. The Hyderabad Metro Water Supply and Sewerage Board (HMWSSB) is looking for institutional finance of Rs. 620 crores from HUDCO and others, and Rs. 160 crores as margin money from the State Government.

The decision to assist this scheme was announced by the Union Minister of State for Urban Development, Mr. Bandaru Dattatreya, at a high-level meeting with Central and State officials here on Tuesday to review State schemes pending with his Ministry. It was attended by the Secretaries of Urban Development and Housing - Mr. S. S. Chattopadhyaya and Mr. Kosal Ram - the HUDCO CMD, Mr. V. Suresh, and State officials from the Departments of Housing, Urban Development, Finance, MCH and HUDA.

Addressing a press conference, Mr. Dattatreya said HUDCO had sought financial details for the Krishna water scheme as also the feasibility report. It had also offered to favourably consider funding another scheme costing Rs. 185 crores to augment water supply to municipalities on the periphery of Hyderabad by plugging leakages in the pipelines.

He said the Centre had released Rs. 120.87 crores as its share towards Hyderabad Mega City Scheme till date. However, the State was yet to release its share of Rs. 10.80 crores in 2001-02. Under this scheme, the Centre and the State Government are required to contribute 25 per cent each and the balance of 50 per cent to be met from external sources.

The Minister said 90 towns in the State had been covered till August under the Integrated Development of Small and Medium Towns (IDSMT) and Central assistance of Rs. 47.30 crores released to them. During the current year, a tentative allocation of Rs. 6.11 crores had been made under this scheme for seven more towns - Nandyal, Suryapet, Bapatla, Kovvur, Nuzvid, Sircilla and Pedana.

The State Government had been impressed about the need to submit utilisation certificates (UCs) for Central assistance given to eight towns - Tuni, Tirupati, Nellore, Gadwal, Bhongir, Kuppam, Eluru and Bobbili. This would enable it to receive additional assistance of Rs. 3.89 crores.

The Government was also asked to submit project proposals for 53 towns with a population of 20,000 and less for receiving Central assistance under the accelerated urban water supply programme for which the current year's allocation was Rs. 3 crores. AP could not avail of funds under this scheme as it could not notify the Nagar Panchayats with a population of less than 20,000.

The Minister said the Centre was attaching utmost importance for implementation of sanitation programmes in all the urban areas to free and rehabilitate persons handling nightsoil.

Mr. Dattatreya said the meeting reviewed the water supply schemes in various municipalities with HUDCO funds. Thirtyeight municipalities had already had been sanctioned funds while four schemes covering Sircilla, Kothagudem, Narasaraopeta and Parvathipuram were recently sanctioned Rs. 29 crores by HUDCO.

Water supply schemes for 13 other towns - Jaggaiahpeta, Macherla, Bobbili, Mangalagiri, Narsapur, Miryalguda, Peddapuram, Suryapeta, Warangal, Anakapalle, Rajahmundry, Machilipatnam - were under consideration.

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