Did the Maha Cabinet Approve a Government Guarantee for a HUDCO Loan of Rs 2,000 Cr?
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Synopsis
The Maharashtra Cabinet's recent decision to guarantee a Rs 2,000 crore loan from HUDCO aims to bolster urban infrastructure development. This strategic move not only facilitates essential projects but also supports local bodies in addressing urban challenges. Discover how this initiative could reshape Maharashtra's urban landscape.
Key Takeaways
- The Maharashtra Cabinet has approved a government guarantee for a Rs 2,000 crore HUDCO loan.
- This funding will support urban infrastructure development across multiple municipalities.
- Key projects include water supply and sewage treatment initiatives.
- The guarantee fee for the loan has been waived, facilitating easier access to funds.
- Approval for land allocation for sewage treatment plants has been granted.
Mumbai, June 24 (NationPress) The Maharashtra Cabinet, led by Chief Minister Devendra Fadnavis, has officially sanctioned a government guarantee for loans amounting to Rs 2,000 crore from HUDCO as part of the Maharashtra Urban Infrastructure Development Loan Scheme. Additionally, the cabinet has decided to waive the guarantee fee associated with this loan.
“In alignment with the centrally sponsored Amrut 2.0 Mission and the Urban Upliftment Mission, as well as other state and centrally sponsored initiatives, local governing bodies are required to independently secure funds for ongoing projects. The Maharashtra Urban Infrastructure Development Loan Scheme facilitates this funding. The loan from HUDCO will cover Rs 822.22 crore for the water supply initiative of Chhatrapati Sambhajinagar Municipal Corporation, Rs 268.84 crore for four sewage projects of the Nagpur Metropolitan Region Development Authority, and Rs 116.28 crore for the water supply project of Mira-Bhayander Municipal Corporation, among other local body requirements,” stated a government release.
Thus, the decision was made to extend a government guarantee for the initial phase of this loan, totaling approximately Rs 2,000 crore, and to eliminate the associated guarantee fee, according to the release.
The Cabinet also approved the allocation of 7,000 sq m from a 1.75-hectare cemetery area in Chikhali for the Sewage Treatment Plant (STP) of the Pimpri-Chinchwad Municipal Corporation.
“To address the challenges posed by escalating urbanization, the Pimpri-Chinchwad Municipal Corporation is establishing a sewage treatment plant in Chikhali to support environmental sustainability and combat water pollution. The project also includes plans for the reuse of treated water. The corporation has received authorization to utilize 40 percent of the 1.75-hectare area designated for the cemetery in Chikhali, thus facilitating the development of the sewage treatment plant,” the release elaborated.
Point of View
It is crucial to recognize the Maharashtra Cabinet's proactive approach in addressing urban infrastructure needs through this loan guarantee. This decision reflects a commitment to sustainable development and responsible governance, positioning Maharashtra to tackle the challenges of rapid urbanization effectively.
NationPress
24/06/2025
Frequently Asked Questions
What is the purpose of the Rs 2,000 crore HUDCO loan?
The loan is intended to support various urban development projects across Maharashtra, including water supply and sewage treatment initiatives.
Who will benefit from the loan?
Local bodies such as the Chhatrapati Sambhajinagar Municipal Corporation, Nagpur Metropolitan Region Development Authority, and Mira-Bhayander Municipal Corporation will benefit from this funding.
What is the significance of waiving the guarantee fee?
Waiving the guarantee fee makes the loan more accessible and financially viable for local bodies, enabling them to undertake critical development projects.
