600 Crores for Drinking Water Supply Scheme to Uddhanam of Srikakulam

600 Crores for Drinking Water Supply Scheme to Uddhanam area of Srikakulam DistrictGovernment have accorded permission to the Andhra Pradesh Drinking Water Supply Corporation (APDWSC) for obtaining loan of Rs.5,330.00 Crores from public sector scheduled banks to take up Drinking Water Supply Projects in (8) Districts viz., Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur and Prakasam out of total project cost of Rs.6,330.00 Crores with following conditions:-

  1. The Loan and Principal Amount are payable by the APDSC and the Govt. Guarantee extended is only for the Principal amount of Rs.5300 crores.
  2. Payment of one time Guarantee Commission of 2% of the Loan Amount to Govt of AP in order to deposit in GRF.
  3. Loans shall be obtained from public sector SCBs and the rate of interest shall be less than or equal to 7.9% annum / as approved by Finance Department and care shall be taken to avoid various penalty clauses for prepayment etc.
  4. In the reference 2nd read above, Government have extended guarantee for interest amount also on loan amount of Rs.5,330.00 Crores on obtaining from public sector scheduled banks to take up Drinking Water Supply Project in (8) Districts viz., Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur and Prakasam District.
  5. Government have accorded administrative sanction for “12 MVS projects for construction of Drinking Water Supply in Srikakulam District” with an estimated amount of Rs.1000.00 Crores.
  6. The Managing Director, A.P. Drinking Water Supply Corporation, Vijayawada has informed that the work was entrusted to M/s L&T Ltd., Chennai on tender basis and later due to vast change in scope of work and financial outlay, the agreement with M/s L&T Ltd., was terminated. He has also informed that Uddanam is a critical area in Srikakulam District where Chronic Kidney disease prevails. The cases are prominent in Ichhapuram, Kanchili, Kavity, Vajrapukothuru, Palasa, Mandasa and Sompeta Mandals. However, scientific reasons could not be identified for occurrence of the disease in these areas. One of the suspected reasons is the water the public is consuming in these areas. The drinking water schemes in this area are ground water based. Hence, it is proposed to provide water to these Mandals through a Multi-Village Scheme with a surface water as source located outside this area.
  7. The Managing Director, A.P. Drinking Water Supply Corporation, Vijayawada has therefore, requested the Government to accord administrative sanction for the work “Providing Drinking Water Supply Scheme to Uddhanam area of Srikakulam District” with an estimated cost of Rs.600.00 crores to Uddhanam area in Palasa and Ichhapuram constituencies of Srikakulam District with Regulapadu Reservoir as source.
  8. Government, after careful examination of the matter hereby accord administrative sanction for an amount of Rs.600.00 crores for the work “Providing Drinking Water Supply Scheme to Uddhanam area of Srikakulam District” to cover 7 Mandals with 807 rural habitations of Uddhanam area, Palasa-Kasibugga and Ichhapuram Municipalities in Palasa and Ichhapuram constituencies of Srikakulam District with Regulapadu Reservoir as source out of the administrative sanction of Rs.1000.00 crores already accorded to Srikakulam District vide G.O
  9. The Managing Director, A.P. Drinking Water Supply Corporation, Vijayawada is hereby authorized to make modifications/alterations in respect of works with reference to the sanctioned works in para-6 above within the project cost of Srikakulam District.
  10. The Managing Director, A.P. Drinking Water Supply Corporation, Vijayawada shall take further necessary action accordingly.

A.P Drinking Water Supply Corporation – Providing Drinking Water Supply Scheme to Uddhanam area of Srikakulam District with an estimated cost of Rs.600.00 Crores – Administrative sanction – Accorded – Orders – Issued.
G.O.RT.No. 563 Dated: 28-08-2019. G.O.Ms.No.11, PR&RD(RWS-I) Department, Dt:05.02.2018.

  1. G.O.Ms.No.49, PR&RD(RWS-I) Department, Dt:16.05.2018.
  2. G.O.Rt.No.1405, PR&RD(RWS-I) Department, Dt:27.12.2018.
  3. From the Managing Director, APDWSC, Vijayawada, Lr.No. AE/APDWSC/ SKLM/Uddanam/2019, dt:27.08.2019.
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