To fund state projects, PUDA to take another Rs 500-cr loan

Rajmeet Singh

Tribune News Service

Chandigarh, May 1

To fund developmental projects in the state, Punjab Urban Planning and Development Authority (PUDA) is now arranging a loan of Rs 500 crore from financial institutions.

The loan amount will be addition to the loan of Rs 2,000 crore taken last year by the PUDA against the unencumbered or surplus lands of various government departments transferred to it by the state government under the optimum utilisation of vacant government land (OUVGL) scheme.

Though the loan amount was not being taken on behalf of the state government, it will be used to fund infrastructure development projects of the state government under the OUVGL scheme. Earlier, a loan of around Rs 370 crore had been taken by PUDA against collateral security.

Against the Rs 500 crore loan, PUDA will be repaying the loan amount and interest from its earnings. Meetings with bank officials are being held to work out the modalities.

Chief Administrator, PUDA, Manvesh Singh Sidhu said PUDA has sold three properties in the recent past and was in a capacity to pay back the loan being arranged from financial institutions.

Against the loan of Rs 2,000 crore arranged on behalf of the state government by mortgaging properties under the OUVGL scheme, around Rs 600 crore had been paid back by the state government.

At present, 85 vacant properties transferred to PUDA under the scheme are being developed. Initiated in 1997, PUDA was appointed as the nodal agency for commercial exploitation of the sites. Despite spending money of their upgrade, PUDA has not been able to dispose of all the properties.