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State government seeks loan to restore river

Dravyavati river in Rajasthan is depleting due to continuous water pollution

Policy Pulse
Publish Date: Jul 9 2016 2:17PM | Updated Date: Jul 9 2016 2:17PM

State government seeks loan to restore river

Rajasthan government is all set to take a loan for rejuvenating Dravyavati river. The govt is asking for loan from the National Capital Region Planning Board (NCRPB). 

The decision to borrow money for rejuvenating the river, which is a pet project of the chief minister, come days after the state government turned down the proposal to opt for loans for the drainage-sewerage projects.
In the absence of bank guarantee, the Central government refused to fund drainage and sewerage projects in the recent NCRPB meeting. Thereafter, the revised proposal was forwarded by the JDA to include these projects in the state government's list.
"The state government has sent the proposal again and it will not provide bank guarantee for drainage and sewerage projects. It would only give bank guarantee to take up rejuvenation work of the Dravyavati river, which will cost about Rs 779 crore." said an official.
In that matter, the only option left, is to mortgage JDA land for a bank loan to construct drainage and sewerage network in the state capital. To seek a bank loan worth Rs 4,000 crore, JDA has decided mortgage its land.
In this regard, the JDA has already identified land worth Rs 2,000 crore on Agra and Sikar roads. "As the state government has again refused to give guarantee for JDA projects, the proposal that JDA will give bank guarantee on its own has been forwarded to state government to table it in NCRPB," said an official.
It is proposed that NCRPB will provide loan at the interest rate of 7.5 % to JDA. The board will give 15% subsidy if loan is repaid on time. The decision has been taken as project is a lifeline for Jaipur. Currently, there is no drainage or a sewerage system in the city besides five major drains to flush out the storm water.