The Huda borrowed money for phase - I works at an interest rate of 9.5 per annum and handed over the works to two foreign companies.
The Hyderabad Urban Development Authority (Huda) on Wednesday decided not to constitute any fund for the 37km work work. The urban body instead decided to go for the annuity model for building the 37 km road , 13km stretch from Shamshabad to Tukkuguda and 24 km from Narsingi to Patancheru.The Huda borrowed money for phase - I works at an interest rate of 9.5 per annum and handed over the works to two foreign companies. But under the annuity model for phase II, the companies themselves will have to invest the money and take up the works by their own.
The Huda will pay the companies in the form of regular annual instalments, Huda vice chairman Jayesh Ranjan said at a press conference after a board meeting. The Huda has also decided to change its policy on acquisition of land. Instead of paying compensation to the landowner, the Huda will make sure that the landowner also gets benefits under the project.
The mode of benefits will be decided soon with the help of Satish Magar, an expert on land settlements, whose formula was successfully implemented by the Pune administration.
