GHAZIABAD: The GDA is all set to save Rs 80 crore as it has inked a deal with Allahabad Bank which offered an interest rate of 8.10% instead of the 10.3% offered by Hudco to finance its land acquisition in Madhuban Bapudham housing scheme. The loan will be sanctioned within a week.
"We have to acquire 281 acre for Madhuban Bapudham scheme. For that, we need Rs 1,232 crore. So in June, we applied for a loan from Hudco which agreed to give it at an interest rate of 10.3%," said Subedar Singh, finance controller, GDA. "Midway through this, we received offers from many institutions who were willing to offer us loan at a lower interest. A few days ago, we inked a deal with Allahabad Bank which offered us loan at an interest rate of 8.10% which will help save Rs 80 crore," said Singh. The bank also offered a higher principal amount of Rs 800 crore and that too for ten years.
The GDA plans to build nearly 20,000 housing units in the scheme.
However, it was caught in litigation after 79 farmers approached the Supreme Court for higher compensation.
"We have to acquire 281 acre for Madhuban Bapudham scheme. For that, we need Rs 1,232 crore. So in June, we applied for a loan from Hudco which agreed to give it at an interest rate of 10.3%," said Subedar Singh, finance controller, GDA. "Midway through this, we received offers from many institutions who were willing to offer us loan at a lower interest. A few days ago, we inked a deal with Allahabad Bank which offered us loan at an interest rate of 8.10% which will help save Rs 80 crore," said Singh. The bank also offered a higher principal amount of Rs 800 crore and that too for ten years.
The GDA plans to build nearly 20,000 housing units in the scheme.
However, it was caught in litigation after 79 farmers approached the Supreme Court for higher compensation.
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