| HYD News: State Govt uses ORR Funds for other projects? |
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HUDA is aggrieved at the State government’s decision to use Rs 420 crores it raised for the outer ring road (ORR) project through the sale of Tellapur land. Media sources said that CM Y.S. Rajasekhar Reddy asked HUDA to transfer the money to the treasury as soon as the Tishman Speyer consortium paid the first installment this month. HUDA was planning to use the money to fund part of the Rs 550-crore relief and rehabilitation package, so that it could launch the second phase of the ORR project without wasting time.
Now the diversion of the funds will delay the entire process. The executing agency of the ring road requires at least Rs 1,000 crores to complete other formalities to prioritize the project. The government felts that the commercial viability of ORR was so high that the project, once completed, would generate enough revenue to repay loans. “Instead of making upfront payments, HUDA can take loans which could be repaid in 10 to 15 years,” a government official said.
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