Pondy, HUDCO sign agreement for development

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Puducherry, Nov 24 (UNI) The Puducherry administration and HUDCO today signed an agreement to develop Thirunallar in the Karaikal region into a temple town.

The agreement was signed between Puducherry PWD Secretary Mr Balakrishnan and HUDCO Executive Director (Chennai) K Balasubramanian in the presence of Puducherry Chief Minister V Vaithilingam.

Lok Sabha member Prof Ramadass, ministers, other senior government officials and HUDCO Chairman K L Chingra also attended the function.

Mr Chingra told newspersons that the Puducherry government had applied for a loan of Rs 146 crore for the project two years back, but could not avail it as it failed to provide a guarentee.

Now it was being availed by providing a guarentee and the loan, with an interest of 13.75 per cent, to be repaid in 15 to 20 years time, he said.

Mr Balsubramanian said 57 hectares of land would be acquired for the project. The government had also sought a loan for Rs 40 crore under the JNURM project, which would also be sanctioned shortly, he added.

Mr Vaithilingam told newspersons that the Planning Commission had given permission to avail Rs 685 crore as loan. The current HUDCO loan amount was sanctiond on a floating interst rate, he added.

The foundation stone for the project would be laid before December 15, he said.

When pointed out by Puducherry Civil Supplies Minister M Kandasamy that the administration had already forwarded a loan proposal for Rs 130 crore for housing purposes of scheduled castes, Mr Chingra said any request from the territorial administration in this regard would be approved within ten days.

Puducherry Chief Secretary Ms Naini Jayaseelan said the administration need not begin the repayment of the loan to HUDCO in the first three years.

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