GOVERNMENT OF ANDHRA PRADESH

A B S T R A C T

 

Municipal Administration & Urban Development -  Infrastructural Development in Urban Local Bodies – ULBs Infrastructure Development Project – Merging of all loans taken amounting Rs 806.00 Crores from HUDCO  with Government Guarantee - Orders – Issued.

 

MUNICIPAL ADMINISTRATION & URBAN DEVELOPMENT (A1) DEPT.

 

G.O..Ms.No. 414                                                                   Dated 04- 09-2003.

                                                                                      Read the following:-

 

 1. From the D.M.A. Hyderabad Lr.No. 10890/2003/Elec.-1/2  dt. 3.06.03.

 2. From the D.M.A. Hyderabad Lr.No. 10890/2003/Elec.-1/2  dt.10.07.03.

                                               *****

ORDER

        

In the letter first read above, the Director of Municipal Administration,  Hyderabad  has  reported  that it is necessary to take up infrastructure  development aimed at providing basic amenities to the urban population and for this purpose  it has been decided to take up the assistance  from HUDCO for Rs. 300.00 crores Infrastructure Development Project prepared by M/S Karvy Investor services Ltd. Hyderabad.  

 

2)      In the meeting held on 8.07.03 on the subject, it has been decided to merge all bank guarantees of the Department into a bulk guarantee of Rs. 806.00 crores   and  to  operate  the loans from HUDCO and securitization of Tax Free  Municipal Bonds with in the ceiling limit of Rs. 806.00 crores.

 

3)               In the letter 2nd  read above,  the Director of Municipal Administration, Hyderabad has further reported that  HUDCO  has sanctioned  a   loan  amount  of Rs.300.00 crores (three hundred crores only) for the A. P Urban Local Bodies    infrastructure  Development  Project for providing capital investment in    infrastructure in 114 Urban Local Bodies to enable the Urban Local Bodies to provide adequate civic amenities.

 

4)      The Director of Municipal Administration, Hyderabad has requested for according administrative sanction for Urban Local Bodies Infrastructure  Development Project and  for merger of all guarantees given by the Government in Finance Department into a bulk guarantee of Rs. 806.00 crores (eight hundred and six crores only).

 

5)      In the  circum stances reported by the  Director of Municipal Administration, and keeping in view the decisions taken in the meeting held on 8.07.03, by Chief Secretary . the Government after careful  examination of the proposal here by accorded administrative sanction for  A.P.Urban Local Bodies Infrastructure Development Project and for merging all  Bank Guarantees including HUDCO loans for an amount of Rs. 806.00 crores (eight hundred and six crores only). 

 

 

 

                                                                                                        p.t.o.l

 

 

 

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6.    The Director of Municipal Administration,. Hyderabad  is  requested   to       

to open an Escrow account  in APUFIDC  into which the Non-Plan grants of the  respective Urban Local Bodies (for which loans are received ) have to be channeled to  the extent of loan servicing.  She is requested to send fresh over all guarantee deeds to the Government.

 

6)         The Director of Municipal Administration, Hyderabad is authorized  to effect at source deduction  of the loan servicing amount from the Non-Plan  grants to be released to concerned  Urban Local Bodies 34for the duration of the loan period.

 

8)      Further, the Director of Municipal Administration is requested to pay the guarantee commission at the rate of 2% consolidated for the entire guarantee period for the balance amount of guarantee before execution of guarantee deeds by Government.

    

9)     This order issues with the concurrence of Finance Department vide their U.O.No.19984/255/DMC/2003, Dated: 2-8-2003.

 

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

 

                                                          A.K.GOYAL,

                                     PRINCIPAL SECRETARY TO GOVERNMENT

 

To

The Director of Municipal Administration, Hyderabad.

The Managing Director, A.P.U.F.D.C. Hyderabad.

The Law Officer HUDCO . Hyderabad.

The Engineer-in-Chief (Public Health), Hyderabad

The Director of Treasuries and Accounts, Andhra Pradesh, Hyderabad.

The Accountant General, Andhra Pradesh, Hyderabad.

Copy to:

 

The Finance (Expr. MA&UD &EFS&T) Department. 

SF/SCs

                                        

                                       //  Forwarded by order //

 

                                                                       

                                                                                  SECTION OFFICER.