Archive · 4 Oct 2026
Telangana Waives Commission on ₹2,944-Crore Hudco Loan
Telangana is helping pay for a large water and river project.
The state will borrow ₹2,944 crore from Hudco for its share of the project.
The full project costs ₹7,360 crore.
A private company will invest the rest of the money.
Telangana has removed a fee that the water board would normally pay for the government’s loan guarantee.
Hudco also lowered the loan’s interest rate from 8.97% to 8.85%.
The state promises to help repay both the borrowed money and its interest.
The work includes drinking-water and river-restoration schemes involving the Musi and Godavari.
Telangana waived HMWS&SB’s 2% guarantee commission on a ₹2,944-crore Hudco loan.
The loan funds the state’s 40% share of a ₹7,360-crore project.
The project covers drinking-water and river-restoration schemes associated with Musi and Godavari.
The remaining 60% of project costs is invested by a selected private agency under a hybrid annuity model.
The state will guarantee the loan and provide budget support for principal and interest repayments; Hudco reduced the annual rate to 8.85% from 8.97%.
- Who
- The Telangana government, HMWS&SB and Hudco.
- What
- Telangana waived a 2% guarantee commission on a ₹2,944-crore Hudco loan and committed to guarantee and support repayments.
- When
- Not specified in the article.
- Where
- Telangana, including schemes associated with the Musi and Godavari rivers.
- Why
- The loan supports the state’s share of drinking-water and river-restoration works, which the government described as publicly important.
Government rationale
Loan obligations
Commission waiver
Government rationale
The government waived the 2% fee, citing the public importance of drinking-water and river-restoration works.
Loan obligations
The article does not report an opposing party or criticism of the waiver; it notes that the state will provide a sovereign guarantee and budget support for principal and interest repayments.
- Lender
- Housing and Urban Development Corporation (Hudco)
- Loan amount
- ₹2,944 crore
- Total project cost
- ₹7,360 crore
- State’s project share
- 40%
- Private agency share
- 60%
- Guarantee commission waived
- 2%
- Annual interest rate
- Reduced from 8.97% to 8.85%