RBI rejects loan to TIDCO houses

Amaravathi, May 8: The Andhra Pradesh got a blow from various banks, which informed that Reserve Bank of India (RBI) has rejected to give loans to the houses being constructed by Andhra Pradesh Township and Infrastructure Development Corporation (APTIDCO). Now getting loans to complete the TIDCO houses has become a herculean task for the State government, which is planning to complete the houses with the loans.
 
TIDCO approached RBI for a loan of Rs 6,000 crore. According to the bank officials, the RBI has clarified that State government’s assurance on budget support is not enough and should go ahead if the organizations have enough resources to repay the loan. According to information, bank officials passed on this information to the TIDCO officials, who stated that there are no official orders in this regard. The bank officials have just orally informed about this and there are no written orders in this regard.
 
The AP government took up 2.62 lakh TIDCO houses construction. 90% of construction works of more than 80,000 houses construction was completed during the tenure of the earlier government. The officials informed the government that Rs 10,000 crore is needed to complete the construction of the remaining houses. Out of this amount, banks have to give Rs 4,000 crore as loans to the beneficiaries. The government suggested TIDCO to take another Rs 6,000 crore from banks and other financial institutions. 
 
According to sources, banks have rejected the proposal and told the TIDCO to mortgage lands, whose value is equal to the loan.  At this point, the TIDCO officials are hoping to get loans from HUDCO.