Andhra Pradesh Road Transport Corporation (APSRTC) is eagerly waiting for the Chief Minister’s nod for getting a loan from Housing and Urban Development Corporation (Hudco) to fulfil its immediate needs.The Hudco wanted a guarantee from State government for sanction the loan to RTC a few days ago following consultations with RTC MD M Malakondaiah during his Delhi tour on December third week, 2016.
A file in this regard has been put up for Chief Minister’s consent through the State finance department a few days ago.According to senior officers in RTC, the corporation made a proposal to Hudco for a loan of Rs 1,200 crore. After negotiations with RTC MD, the Hudco has accepted to sanction Rs 1,000 crore and wanted guarantee from the State government.State Finance department nodded for giving ‘comfort letter’ to Hudco and put the file for the Chief Minister’s clearance. RTC MD may meet the Chief Minister on the issue soon, sources said.
However, the financial burden of RTC may increase many folds if it receives fresh loan from Hudco as the organisation has already availed Rs 2,328 crore from various banks and financial institutions.According to a senior officer, a major amount of Hudco loan might be diverted to fulfill its immediate financial needs though the management says it is taking loan to procure new buses.