Date:31/07/2004 URL: http://www.thehindubusinessline.com/2004/07/31/stories/2004073101341900.htm

Back AP seeks IDBI aid for Godavari hydel projects

Our Bureau

The State has also urged the IDBI to extend a special line of credit of around Rs 800 crore for specific requirements.

Hyderabad , July 30

THE Chief Minister, Dr Y.S. Rajasekhara Reddy, has said that the Government was contemplating to take up mega hydropower projects on the River Godavari and sought financial assistance from the Industrial Development Bank of India (IDBI).

Apart from seeking a revision of interest rates on loans given to the individual power projects in the State, the Government has also urged the IDBI to extend a special line of credit of around Rs 800 crore for specific requirements and activities excluding infrastructure projects.

While addressing a meeting of the Ministers, Government officials and Directors of the IDBI here on Thursday, the Chief Minister said proposals were on to maintain the hydropower projects in the public sector. Dr Reddy urged the IDBI Chairman and Managing Director, Mr M. Damodaran, to formulate a bankable scheme for the proposed projects costing Rs 1,000 crore to Rs 1,500 crore.

According to a press release issued by the Chief Minister's Office, the IDBI Chief responded positively and extended consultancy services required by the State Government on various projects.

Stressing the importance of industrial growth, the Chief Minister said that though his Government was making every effort to revive the rural economy, equal importance was being accorded to promotion of industrial development.

The State has already emerged a hub for industrial sectors such as pharmaceuticals, biotechnology and information technology. Dr Reddy invited the IDBI to participate in the ventures of the Government.

The Principal Secretary (Industries), Mr K.V. Rao, made a power point presentation on the areas where the IDBI support is sought.

These include natural gas projects, development of sea and airports, energy, biotechnology, bio-diesel, agro, pharma, apparel and leather parks and revival of sick industries such as Kadapa Sugars and Rayalaseema Paper Mills.