* GSIDC to repay nearly Rs 900 crore for 12-year term * Bridge to be costliest in Goa’s history
Photo Credits: New Mandovi bridge underconstruction
Cash-strapped Goa State Infrastructure Development Corporation (GSIDC) will have to shell out Rs 866.44 crore, almost double the figure of Rs 470 crore quoted liberally so far by authorities, for the third bridge across River Mandovi.
The loan agreement signed on June 8, 2015 between National Bank for Agriculture and Rural Development (NABARD) and the nodal agency grants a loan amount of Rs 462.60 crore. The State government will bear 10 per cent of the total project cost, thereby contributing Rs 51.40 crore to the project.
However, perusal of the loan repayment schedule shows that GSIDC has to pay back the principal amount along with total interest at 10.5 per cent per annum (quarterly basis) amounting to Rs 403.84 crore.
The total amount to be repaid NABARD by the end of June 2027, therefore, stands at a staggering figure of Rs 866.44 crore.
This makes the new bridge the costliest bridge in Goa’s history.
The loan repayment schedule spans across 12 years including a three-year moratorium on the principal amount. During this period, GSIDC will have to repay only the interest in 12 quarterly installments of Rs 12.14 crore each. In other words, GSIDC has to service a total of Rs 145.72 crore, almost one-third of the total amount to be repaid by the year 2027.
The entire loan amount has to be lifted by December 2018.
GSIDC’s quarterly payment dates for principal amount have been fixed on June 30, September 30, December 30 and March 31 respectively.
On completion of the three-year moratorium, the quarterly installments will be pushed to a little over Rs 20 crore and almost Rs 80 crore will have to be repaid annually till 2027.
The clauses governing default in repayment hint that GSIDC would benefit by pushing for quicker completion of the project and by ensuring that the project cost itself does not exceed Rs 514 to Rs 517 crore.
The million dollar question, however, is how GSIDC will meet the quarterly payments given that its annual profit during the last financial year stood at Rs 7.12 crore.
