GOVERNMENT OF ANDHRA PRADESH.

ABSTRACT

 

Municipal Administration and Urban Development Department – Infrastructural  Development in Urban Local Bodies – Urban Local Bodies  Infrastructure Development Project – Merging of all Loans and issue of Continuing Revolving Government Guarantee for Rs. 806.00 Crores to HUDCO  - Revised orders -  Issued.

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MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT (A1) DEPARTMENT.

 

G. O .Ms. No. 483.                                                                                               Dated: 21-10-2003.

                                                                                                                              Read the following:-

 

1) G. O. Ms. No. 414, M.A & U.D. (A1) Department, dated 04.09.2003.

2) From the Director of Municipal Administration, Andhra Pradesh, Hyderabad

    Letter No. 10890/2003/Elec-1, dated 18.09.2003.

3) From the Managing Director Andhra Pradesh Urban Finance and  Infrastructure         

    Development Corporation  Limited, Hyderabad Letter No. 948/2003/A1/APUFIDC/

    dated 18-10-2003.

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ORDER:

 

            In the G.O. first read above orders have been issued according administrative sanction for Andhra Pradesh Urban Local Bodies Infrastructure Development Project and for merging all bank guarantees given by the Government including HUDCO loans for an amount of Rs. 806.00 Crores.

 

2.         In the letter 2nd read above, the Director of Municipal Administration, Andhra Pradesh, Hyderabad has reported that the Regional Chief, HUDCO had raised certain objections on the G. O. first read above and requested to issue certain amendments to the said G.O.

 

3.         The Managing Director, APUFIDC Ltd. in the letter 3rd read above while proposing certain conditions has suggested   to issue a fresh G.O. superseding the orders issued in the G.O. 1st read above, and in view of the amendments proposed by the Director of Municipal Administration, Andhra Pradesh, Hyderabad.

 

4.         The Government after careful examination of the entire matter and in super session of the orders issued in the G.O. 1st read above hereby accord administrative sanction for Rs. 300.00 Crores for A.P. Urban Local Bodies Infrastructure Development Project and also order for merging of all  Government guarantees including HUDCO loans   with a maximum limit of Rs. 806.00 Crores in the form of Continuing Revolving Government Guarantee for the loans sanctioned / to be sanctioned to Andhra Pradesh Urban Finance and  Infrastructure Development Corporation Limited.  Out of this, the guarantee limit in respect of HUDCO loans is for an amount of Rs. 700.00 Crores and the remaining 106.00 Crores available with the Government  shall be utilised  in respect of the loans to be sanctioned by   other lending financial institutions at a later date as and when such proposals come up.  A tripartite agreement has to be executed by Secretary, Finance Department, Managing Director, Andhra Pradesh Urban Finance and Infrastructure Development Corporation  Limited, and HUDCO.

 

5.         The Managing Director, Andhra Pradesh Urban Finance and  Infrastructure Development Corporation Limited, is directed to open an Escrow Account in any Nationalised Bank into which the Non Plan Grants for the respective Urban Local Bodies (for which loans are received) have to be channeled to the extent of loan and interest servicing by the Director of Municipal Administration.  Further, the Escrow Agreement shall be signed by the Managing Director, Andhra Pradesh Urban Finance and  Infrastructure Development Corporation  Limited, Director of Municipal Administration, Andhra Pradesh, Hyderabad, concerned Banker and HUDCO.

 

 

                                                                                                                                                P.T.O.

 

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

 

7.            Further, the Director of Municipal Administration, Andhra Pradesh, Hyderabad 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.

 

8.         This order issues with the concurrence of Finance (DMC) Department vide their U.O.

U.O.No. 19984/225/DMC/2003, Dated 02.08.2003.

 

(BY ORDER ANDIN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

                                                                                                             S. R. RAO.

  PRINCIPAL SECRETARY TO GOVERNMENT.

 

To

The  Director of Municipal Administration,

Andhra Pradesh, Hyderabad.

The Managing Director,  Andhra Pradesh Urban Finance and  Infrastructure Development   

Corporation  Limited, Hyderabad

The  Regional Chief,HUDCO., Hyderabad.

The Engineer-in-Chief (PH) Hyderabad.

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

The Law Officer, HUDCO., Hyderabad.

The A.G. A.P., Hyd.

 Copy to the Finance (DMC)Department.

 SF/SCs.

 

// FORWARDED :: BY ORDER //

 

 

 

                                           SECTION OFFICER.