Sliding rupee value comes as a blessing for Telangana’s Musi project
Falling rupee value has enhanced the project funding for the Musi Riverfront Development Corporation (MRDCL) to carry out the river development works. The external funding
Falling rupee value has enhanced the project funding for the Musi Riverfront Development Corporation (MRDCL) to carry out the river development works. The external funding from the Asian Development Bank has added bulk, due to the increased exchange value of dollar over the years. While in real terms, the multilateral agency has given approval for USD500 million, it had translated into ₹4,100 crore over a year ago when the loan was sought.
With rupee value sliding substantially since then, the actual funding has now reached ₹4,500 crore. The dollar exchange rate has jumped from ₹82 to around ₹95 in the intervening period. Government, on Thursday, issued orders according administrative sanction for ₹7,345.12 crore for Phase-1 of the Musi Riverfront Development project. This excludes the land acquisition cost. The entire project cost is to be funded through borrowings — major part of ₹4,500 crore from Asian Development Bank and the remaining ₹2845.12 crore from the Hyderabad Metropolitan Development Authority or the Telangana Industrial Infrastructure Corporation (TGIIC).
Musi Riverfront Development Corporation will execute the project. Areas in the Zone-1 are to be taken up with the funding, divided into two parts, 9.2 kilometres from Himayat Sagar to Gandhi Sarovar / BapuGhat (Zone-1A) costing ₹3232.01 crore, and 11.8 kilometres from Osman Sagar to Gandhi Sarovar / BapuGhat (Zone-1B) costing ₹4113.11 crore. ADB accorded funding with the caveat that the remaining amount should be born by the State government as a grant.
The works will be taken up on Engineering-Procurement-Construction mode, engaging Project Management Consultancy (PMC) for implementation, supervision and monitoring of the project duly following the ADB guidelines for procurement, the orders said.
The BriefWire