Bank of India (BoI) and Jammu & Kashmir Bank have sanctioned Rs 50 crore each for capacity expansion of three water supply projects in Goa.
The projects, which are expected to cost Rs 170 crore, have a unique funding pattern as the banks have asked for an escrow cover for the projects. Of the total expected cost, the state government is to contribute Rs 20 crore and the rest is to be raised through the issue of bonds.
While the expansion cost of one of the projects, Assonora water supply scheme, is estimated at Rs 66.80 crore, that of a second scheme, Sanquelim, is estimated at Rs 29 crore.
More From This Section
Sources said that the debt would be serviced through the income generated from the projects, and in case of shortage of revenue, the state government proposes to service the debt through annuity payment that is provided in its budget every year. The state government also proposes to raise the tariffs for individual consumption as the lenders were of the opinion that the tariffs are on the lower side.
Currently, the tariff for domestic consumption is Rs 2 per 30 kilo litre, if the consumption is upto 1 kilo litre a month. Beyond that the tariff is Rs 4. The state government plans to raise the tariffs by 10 per cent, every three years, on all categories of consumers.
It is also planning a one time non-refundable charge to be levied to raise more revenues. The proposed one-time levy is expected to be Rs 2,000 for domestic users, Rs 5,000 for commercial users and Rs 10,000 industrial users.
The Goa State Infrastructure Development Corporation is to undertake a pre-feasibility study of the project, which will be implemented in one year. The corporation is also evaluating various financial structures such as Build Operate Lease Transfer. It also appointed consultants to undertake the study of the project.