Kerala - Kochi   

Brahmapuram plant: civic body to consider revised loan proposal

KOCHI: A special council meeting of the Kochi Corporation on Wednesday will consider a revised loan application for buying land for the Brahmapuram solid waste treatment plant.

It is the escalating land price in the region that has made the civic authorities go for a revised loan.

The Corporation hopes to obtain Rs.19 crore from HUDCO for buying 15 acres at the site.

The HUDCO had sanction Rs.12 crore in 2005 for buying 65 acres.

However, the civic body failed to ink the land deals at that time. Now, with the land price soaring, the civic body will have to shell out Rs.19 crore for just 15 acre. The HUDCO has in principle agreed to sanction the loan and the nod of the Corporation council is required for obtaining the assistance, said civic authorities.

The daunting task before the civic body now is to find resources for taking possession of another 50 acres in the area.

The civic body plans to pledge the private bus stand at Kaloor, the 37 acres at Brahmapuram which is already in its possession and the 15 acres it proposes to buy using the loan amount as the collateral security for the loan.

The repayment period of the loan is 15 years. The loan is a diminishing one and the repayment will be on quarterly basis. In each quarter, the Corporation will have to repay Rs.1 crore to the financial agency.

The repayment of the loan amount would not be a burden to the Corporation though there are no plans for the civic body to levy user fee on the residents of the city.

The Brahmapuram project is conceived as a non-remunerative one in the service sector and the civic body can consider the option of levying user fee for the commercial sector for removing garbage. The civic body will have to take a policy decision in this regard.

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