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`Centre should reduce interest rate on JBIC loan'

Staff Reporter

THIRUVANANTHAPURAM: The Central Government should pass on the loan given by the Japan Bank for International Cooperation (JBIC) to the State at the same interest rate at which the bank gives it to the Centre, Chief Minister V.S. Achuthanandan has said.

He was speaking after the `operational inauguration' of the JBIC-aided drinking water projects to be implemented in five districts in the State at a cost of Rs.2600 crore. The JBIC gives loans to the Centre at an interest of 2.5 per cent. The Centre in turn gives it to the State at an interest of nine per cent.

While it is true that the State need repay only 70 per cent of the loan amount — the rest being treated as grant — the high interest rate ensures that the grant remains an empty promise, the Chief Minister said. "The Centre should give us the loan at the same rate of interest at which the bank gives it to the Centre," Mr. Achuthanandan said.

As with the building of sea walls, the public has a lot of reservations about laying of pipes beneath the ground. Experience shows that such reservations are not baseless. It is widely known that some engineers and contractors indulge in cheating. A good part of the project outlay goes as bribe, he said.

"Such things should not happen in the case of the JBIC scheme. The people and people's representatives should be vigilant. Public scrutiny is the best auditing." "If anyone demand a bribe to clear a bill the fact should be secretly brought to the attention of the officials concerned. A majority of the engineers and contracts have commitment to the public. However, for long-standing apprehensions to be answered, they should ensure that all their colleagues do justice to the public cause," Mr. Achuthanandan said.

Law Minister M. Vijayakumar presided. Minister for Water Resources N.K. Premachandran inaugurated the Thiruvananthapuram component of the JBIC scheme.

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