Chennai: The Tamil Nadu government has refused to accept the interest cost of the loan received from the World Bank for the housing development project implemented by the Urban Habitat Development Board.
A housing development project for the urban poor is being implemented in Tamil Nadu with the help of the World Bank. In the first phase, a loan of Rs 3,750 crore has been obtained from the World Bank for the Rs 5,363 crore project.
The Tamil Nadu government has announced that the second phase of the project will be implemented at an estimated cost of Rs 1,500 crore. For that, an agreement to get a loan of Rs 1,570 crore from the World Bank was signed a few months ago.
Subsequently, the Tamil Nadu government ordered the Urban Habitat Development Board to carry out the implementation of this scheme.
In this case, the question arose as to who will pay the interest amount for this loan to the World Bank.
The Urban Habitat Development Board provides housing to people at subsidized rates and does not generate revenue; Therefore, the board insisted that the government should bear the cost.
In this regard, the government has rejected the proposal sent by the board.
Then, as the Chennai Metropolitan Development Corporation (CMDA) has its own financial resources, it can use that to pay the interest on the World Bank loan.
Therefore, the government has ordered that CMDA should accept this responsibility.
Regarding this, CMDA officials said:
CMDA earns revenue by sanctioning new construction projects. In this, OSR, fee, infrastructure development fee, accommodation fund etc. are credited to the government account.
As these sources of funds are under the direct control of the Government, they cannot be utilized by the CMDA.
CMDA has spent a lot of money on various projects announced in the last one year, but due to this order of the government, CMDA has come under pressure.
Thus they said.
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