Hyderabad, Dec 1 (UNI) The Andhra Pradesh Cabinet today approved a proposal to avail Rs 2,422 crore loan from the 'Japan Bank for International Cooperation' (JBIC) for the 'Rs 3,187 crore-Phase II-B' of the Outer Ring Road (ORR) project.
Briefing newspersons after a Cabinet meeting, chaired by Chief Minister Y S Rajasekhara Reddy, Information Minister A Ramanarayana Reddy said the JBIC had in principle agreed to process the proposal.
With this, tying up funds for the entire ORR project had been completed, he said.
''The first loan agreement, for three packages from Patancheru to Shamirpet, is likely to be concluded in February, 2008, and the works will be grounded in mid next year,'' he said, adding, the JBIC was likely to sanction loan for the remaining three packages in September, 2008.
The 'Phase-I', from Gachibowli to Shamshabad, at a cost of Rs 699 crore had been taken up in July, 2006, with loan from consortium of banks and the works were in progress.
The 'Phase II-A', from Narsingi to Patancheru and Pedda Amberpet to Shamshabad, costing Rs 2,439 crore was grounded in December, 2007, under the Public-Private Partnership model on Build, Operate and Transfer (BOT)-annuity basis, he said.