GOVERNMENT OF ABSTRACT

Industries & Commerce Department - Loan from M/s. APMDC Ltd for an amount of Rs.200 Crs on reimbursement basis to Urban Development Authority as advance for development activities in Machilipatnam Urban Development Authority (MUDE) Region – Orders – Issued. ------INDUSTRIES & COMMERCE (M.II) DEPARTMENT

G.O.Ms.No.127 Dated : 31.10.2018 Read the following:-

1. G.O.Ms.No.9, E, I&I (Porets.I) Dept., Dt.08.05.2018. 2. G.O.Ms.No.19, E, I&I (Ports.I) Dept., Dt.22.06.2018. 3. G.O.Ms.No.203, MA&UD (H2) Department, dated : 29.06.2018. 4. From the Vice Chairman, Urban Development Authority, Machilipatnam, Lr.No.59/Admin/MUDA-Finoexp(BGT)/1/ 2018-DC (Unit)-MUDA, Dt.26.10.2018.

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ORDER:

In the reference first read above, Government have issued orders approving the proposal of the INCAP towards extending Government Guarantee for raising of loan for an amount of Rs.1092 crores (cost of land and predevelopment works) from the Public Sector Banks / Financial Institutions towards land acquisition and other developmental activities of Machilipatnam Deep Water Port and setting up of Integrated Logistics & Manufacturing Zone (ILMZ) by Container Corporation of (CONCOR) at Machilipatnam.

2. Subsequently, in the reference second read above, the Energy, Infrastructure and Investment (Ports.I) Department have cancelled the orders issued in the GO first read above i.e. extending the Government Guarantee to INCAP for raising of loan.

3. In the reference third read above, orders were issued by the MA & UD Department approving the proposal of the Vice Chairman, Machilipatnam Urban Development Authority towards extending Government Guarantee for raising of loan for an amount of Rs.1385 crores from Financial Institutions for development of Machilipatnam Port and Industrial Corridor and trunk infrastructure & Industrial Townships, subject to the usual terms and conditions mentioned therein.

4. In the reference fourth read above, the Vice Chairman, Machilipatnam Urban Development Authority has reported to the Government in Energy, Infrastructure & Investments Department that they requires an amount of about Rs.200 crores as an interim arrangement till the sanctioning of the loan for initiating implementation of several project related activities for achieving the intended vision of the State Government for the development of the Machilipatnam Urban Development Authority region. He further reported that the matter was discussed during the Collectors Conference review meeting conducted by the Hon’ble Chief Minister on the progress of Developments in Machilipatnam including Machilipatnam Port on 26.10.2018 and that during the meeting, the Hon’ble CM has directed the MD, APMDC to advance an amount of Rs.200 crores from APMDC to Machilipatnam Urban Development Authority to speed up the implementation of various measures for development in the region and the advance amount shall be returned without interest on receipt of loan from financial institutions. Therefore he has

Contd… ::2:: requested for immediate release of the advance amount of Rs.200 crores from APMDC to speed up the implementation of necessary developmental works and that the amount shall be returned back to APMDC on receipt of loan amount from the Financial institutions within four months.

5. The Vice Chairman & Managing Director, M/s Andhra Pradesh Mineral Developmental Corporation Limited, who has been consulted in the matter, has stated that as per the provisions of the Companies Act 2013, the Board of Directors of APMDC may sanction the Loan of Rs. 200 Crores to Machilipatnam Urban Development Authority by charging nominal rate of interest i.e. approx. 7% PA, which is repayable (Principle + interest) within 45 days.

6. Government, after careful examination of the matter, hereby approve for arranging a loan for an amount of Rs.200 crores (Rupees Two Hundred Crores only) from M/s APMDC Ltd., to Machilipatnam Urban Development Authority by charging an interest @ 7% per annum, which will be decided by the Board of Directors of APMDC, which shall be repayable within 45 days.

7. The Vice Chairman & Managing Director, M/s. Andhra Pradesh Mineral Development Corporation Limited, , is therefore, requested to take necessary action accordingly.

8. This order issues with the concurrence of Finance Department vide their U.O.No.FIN.UO.No.FMU0ASD(IC)/10/2018-FMU-I and C-FIN, Dt.31.10.2018.

(BY ORDER AND IN THE NAME OF GOVERNOR OF ANDHRA PRADESH)

B. SREEDHAR SECRETARY TO GOVERNMENT To The Vice Chairman & Managing Director, M/s Andhra Pradesh Mineral Developmental Corporation Limited., Kanuru, Vijayawada. The Vice Chairman, Machilipatnam Urban Development Authority, Machilipatnam. The MA & UD Department, AP Secretariat Buildings, Velagapudi. Copy to: The Director of Treasuries and Accounts, Ibrahim Patnam, . The Accountant General, Andhra Pradesh, Vijayawada / Hyderabad. The Energy, Infrastructure & Investment Department. The Finance (FMU I&C) Department, The P.S. to M(M&G). The P.S to Secretary (Mines). The P.S to Prl. Secretary to C.M. Sf/Sc (C.No. ENE01-PORT/19/2018-PORTS-E&I&I)

//FORWARDED:: BY ORDER// SECTION OFFICER