APTDC pledges Berm Park as collateral for Rs 143 crore loan – The New Indian Express
VIJAYAWADA: Andhra Pradesh Tourism Development Corporation (APTDC) has pledged Berm Park in Vijayawada, one of the tourism department’s prized assets, to HDFC Bank to raise loans to the tune of `143 crore. Senior officials said the State government in December 2020 had given approval to APTDC to raise loans with Berm Park lands as collateral for renovations and repairs in addition to the development of new projects. The first installment of the loan will be 35 crores.
Stating that the loan sanction has yet to materialize, the officials clarified that there was a delay in its processing due to the Covid pandemic and other unspecified reasons. They expect the first installment of the loan to be released in 2-3 days. According to sources, several projects, which were conceptualized in 2015-16 and ready for execution, but are delayed due to lack of funds . Additionally, there are pending bills amounting to 10 crore, which need to be settled.
Berm Park spans five acres on the banks of the Krishna River in Vijayawada and is one of the prime locations along the Hyderabad-Machilipatnam National Highway (NH-65). It is one of the most visited tourist destinations and a popular sailing spot. It is also a popular place to hold meetings, functions and parties. Officials argued that pledging Berm Park as collateral to raise money would not mean the park’s operations would stop. They claimed that the two issues were unrelated.
The money will mainly be used to improve facilities at existing tourist destinations. Several sites need better connectivity, sanitation facilities and accommodation, officials said. Sources added that as the company does not have enough equity, the need to raise loans has become necessary to support the projects that are on the anvil and also to undertake renovations and repairs of the existing projects.
“In addition to supporting existing projects, all future projects need funds, which cannot be expected from the government given the current financial situation. There are approximately 39 projects in the concept stage that are being actively considered,” sources said.
Popular for parties, dating
Berm Park spans five acres on the banks of the Krishna River in Vijayawada and is one of the prime locations along the Hyderabad-Machilipatnam National Highway (NH-65). It is one of the most visited tourist destinations and a popular sailing spot. It is also a popular place to hold meetings, receptions and parties.