The Greater Visakhapatnam Municipal Corporation (GVMC) is planning to borrow Rs 150 crore for completing the projects taken up under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), and it has got 18 months' time to finish them.
Sources say that the corporation has kept the decision on hold in view of the money to be released by the State Government.
A sum of Rs 126 crore is expected from the State Government, including its share of 20 per cent towards the urban mission project work so far completed.
According to officials, so far works worth Rs 40 crore have been completed by contractors for which bills are due.
“If the Government releases the amount, it will see through the works. That’s why we are deferring the loan,” said an official.
The corporation has, so far, borrowed Rs 300 crore to foot its 30 per cent share of the Rs 1,895-crore urban mission works. Of the cost, Rs 180 crore is towards 15,500 houses for which no share of the corporation is required.
But an additional water supply project estimated to cost Rs 80 crore has been included. Altogether the corporation’s share is estimated at Rs 540 crore. The corporation has raised Rs 100 crore from its own resources.
The corporation’s general body had already given its consent for the borrowing before its term ended this February and the Government has also issued a GO.