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.
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).
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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)
PRINCIPAL SECRETARY TO GOVERNMENT
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.
The Finance (Expr. MA&UD &EFS&T) Department.
// Forwarded by order //