J&K Government To Borrow 1500 Crore From Open Markets For Languishing Projects

Delhi Dec, 12 (PTK) Many development projects in UT of J&K have not witnessed any progress over the years due to either insufficient funds or improper allocation of funds in the budget. But now the Jammu Kashmir Infrastructure Development Finance Corporation(JKIDFC) has decided to borrow 1500 crores from the open market to complete the languishing projects.

Earlier JKIDFC had raised 3000 crores from various completed projects but all the funds were exhausted in paying the dues that were taken from the firms that were registered with RBI to complete the projects. Now the JKODF has given nod to borrow 1500 crores from the open market at an interest rate of 8.5% and these funds will be raised in the coming fiscal year.

To complete the projects JKIDFC has invited expression of interest from reputed banks, financial institutions that are registered with RBI for lending 1500 crores for the projects. JKIDFVC have requested the lenders to invest the amount during the January-March 2020-21 and April-May 2021-22.

The JKIDFC was established after the State Administrative Council(SAC) on 5 September 2018 decided to provide a bonus to the infrastructure development activities across J&K. The main function of JKIDFC was to mandate loans up to 8,000 crores for development projects in J&K.

Now the question arises that when the budget of J&K was announced by the LG of J&K at that time was no fund allowed for these projects and how will the J&K Administration will repay these loans?(PTK)