Fast-track development: Govt to borrow Rs 2000 crore to complete languishing projects in J&K

Srinagar: Jammu and Kashmir government has decided to borrow Rs 2000 crore from the open market to complete the languishing developmental projects.

Official document accessed by The Kashmir Monitor revealed that the Jammu and Kashmir Infrastructure Development Finance Corporation has invited Expression of Interest (EOI) from the Reserve Bank of India regulated financial institutions to lend money to the corporation.

“The corporation has invited sealed Expression of Interest (EOI) from reputed RBI regulated banking and financial institutions, companies of the country, to submit written proposals for advancing loans of Rs. 2,000 crore to be availed during remaining months of the current financial year 2021-22 and a quarter of next financial year (2022-23),” the document said.

The bidders have been asked to remain prepared for investing by January-March 2022.

“The bidders have to quote the rate of interest (MCLR linked) at which they will offer the loan along with the amount they are prepared to invest during January-March 2022 and April-June 2022-23. Any change in the interest rate during subsequent years will be MCLR linked. Expression of Interest (EOI) must be delivered both in written hard copy and as well as digital form and should include the banking/ financial company’s demonstrated capacity to provide the credit facility,” it said.

Hundreds of projects have witnessed no progress over the years due to insufficient funds or scant budgetary allocation.

Earlier in 2020, Jammu and Kashmir government had asked the banks to offer loans up to Rs 1500 crore.

“This year the cost has been escalated given the change in the rates of material and labor. Further, the administration is willing to complete these projects in a stipulated time,” a senior official said.

Jammu and Kashmir Infrastructure Development Finance Corporation (JKIDFC) is a Registered Corporation under the Companies Act, 2013. The Corporation is mandated to raise a loan up to Rs 8,000 crore.

The Corporation was established as per the decision taken by the State Administrative Council (SAC) on September 5, 2018, to provide a fillip to the developmental activities across Jammu and Kashmir.

“Now, the work on these projects has to be started. The administration has given orders to these departments to prioritize their completion,” the official said.