Hyderabad, Oct. 4 -- The Telangana government has cleared financial support for a Rs 2,944-crore loan to the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB). It removed the 2 per cent guarantee commission on the borrowing.

The loan has been sanctioned by the Housing and Urban Development Corporation (Hudco) and will finance the state government's share of a Rs 7,360-crore project. The government will fund 40 per cent of the project cost while the remaining 60 per cent will be invested by the selected private agency.

Government to back loan repayments

Under the revised arrangement, the Telangana government will provide a sovereign guarantee for the HMWSSB loan.

The government will also provide budgetary support to meet ...