Austria to lend Rs 3000 crore to Andhra

Austria has agreed to provide a Rs 3,000 crore loan assistance, partly in kind, to the Andhra Pradesh government for its endeavour in irrigation infrastructure development.

The loan assistance would cover the Godavari lift irrigation scheme-first phase and the setting up of a 350 mega watt hydro electric project proposed at Dummugudem for the energy requirements of the lift scheme.

The Austrian government came forward to support the state's irrigation projects when Chandrababu Naidu was the chief minister. Now, it has come out with a preliminary report on the said loan assistance, while confirming its support.

Disclosing the latest development, Ponnala Laxmaiah, minister for major irrigation, said that the Austrian loan assistance would cost a mere 4.9 per cent rate of interest.

The repayment would start only six months after the completion of these projects, he said.

The other terms and conditions would be worked out in due course, the minister stated.

Earlier on Wednesday, the Austrian ambassador Jutta Stefan-Bastl and Austrian Trade Commissioner Sepp Dabringer met chief minister Y S Rajasekhara Reddy and pledged their support to his grand plans for the irrigation sector.

They have also invited the chief minister to visit their country which was readily accepted. The chief minister's visit is likely to be in July or August this year.

The state government has already issued administrative sanction to the Rs 900 crore worth project works with regard to the Godavari lift irrigation scheme.

Both the first phase scheme and the hydel power project would cost about Rs 5,200 crore, out of which the Austrian government would provide the Rs 3,000 crore assistance.

Interestingly, the Austrian government's representatives have also come forward to start pilot projects and transferring technical know-how in 'rubber dam' concept, 'geo membrane lining' for irrigation canals beside 'hydromatrics power generation'.

According to the minister, the Austrian government has in-principle agreed to extend financial support to the second phase projects which include Yellampally, Polavaram and Jungareddypally also. These three projects would roughly cost about Rs 17,000 crore.

The Austrian government is planning to set up a trade office in Hyderabad.