There is news that NABARD is funding the 3rd Mandovi Bridge to the tune of Rs. 450 crores at an interest rate of 10.5%. This funding mechanism is extremely expensive for an infrastructure project like a bridge. Typical interest rates for major projects like dams and bridges are 4 – 6%. Therefore one has to but ask why the government/GSIDC is going overboard with such funding at exorbitant rates of interest.
First, the bridge is being planned when the State has been reeling under revenue constrains consequent of the mining stoppage. Second, the government had sometime back made a statement that the bridge is being funded by HUDCO where interest rates are in the range of 4 – 6% but suddenly the fact that the borrowing is from NABARD has come out now.
During the presentation of the Budget in the Assembly just last month the Chief Minister gave out figures that the public debt for Goa is to the tune of some Rs 9000 crores. It is but natural to assume that this profligate borrowing of Rs 450 crore from NABARD will add to that debt.
The other aspect to such expensive borrowing is that the government will put a toll tax on the 3rd Mandovi Bridge to recover their profligacy. Thus for a 3rd Mandovi Bridge which is completely unnecessary citizens using it may end up paying through their nose.
S. Kamat, Alto-Betim
