Pune, Nov 11: The Housing and Urban Development Corporation Ltd (Hudco) is going to part-fund the Pune Municipal Corporation's (PMC) Rs 392 crore water supply and sanitation project. Hudco will be putting in Rs 200 crore into the project of which it has already sanctioned Rs 100 crore, Hudco chairman and managing director V Suresh said. The funding is in the form of a 15-year loan with an interest rate of 13.5 per cent. The remaining 50 per cent will be met by PMC through its internal accruals.Earlier the PMC had envisaged an ambitious Rs 750-crore project, but it had to be retendered. "This is a scaled down version of the project where the scope and size of the project was reviewed and brought down to manageable levels," Mr Suresh said.
Water is going to be a major area for Hudco, Mr Suresh said. Funds to the tune of Rs 5,500 crore would be directed for city infrastructure projects of which water will receive almost Rs 2,500 crore. In addition to the PMC water project, Hudco has recently sanctioned Rs 200 crore to the Maharashtra government for a rural water supply scheme. Similarly, Rs 200 crore is going to Tamil Nadu, Rs 287 crore for Andhra Pradesh and Rs 87 crore for Rajasthan's rural water supply scheme.
Mr Suresh indicated that Hudco would be seeking changes in the management of the water resources by the PMC in areas of water charges and reduction in transmission wastages.
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