MMRDA bails out BMC with Rs 165 cr loan

The corporation was under pressure to avail of this loan since some ongoing works could not be stopped, said a BMC spokesperson. The MMRDA is charging an interest of 12 per cent on the loan which will be disbursed over a period of five years. The corporation has agreed to repay the loan over a span of 20 years.Discussions between the BMC and MMRDA were held soon after the World Bank stalled its loan of $ 185 million in June last year following the failure of the civic administration to complete the aided projects on schedule.The corporation had borrowed money from the WB to complete the Bombay-I and II projects earlier. The first loan of $ 55 million was obtained from the WB in 1974 and another loan of $ 196 to complete Bombay II was obtained. In 1988-89 the corporation borrowed $ 185 million of which $ 145 million was stalled by the WB in 1996.

Some of the main works to be completed include construction of a tunnel from Ruparel College to Mahalaxmi, construction of reservoir and pumping house at Rawli, reservoir at Malabar Hill, reservoir at Worli Hill, mechanical works for pump station at Rawli.