Andhra pradesh act 008 of 2004 : Andhra Pradesh Water Resources Development Corporation (Amendment) Act, 2004

SOR Statement of Objects and Reasons

STATEMENT OF OBJECTS AND REASONS

In order to develop the schemes for drinking water and industrial water supply and to harness the water of rivers of State of Andhra Pradesh and for promotion and operation of irrigation projects and command area development the Andhra Pradesh Water Resources Development Corporation was established under the Andhra Pradesh Water Resources Development Corporation Act, 1997. Under sub-section (2) of section 34 of the said Act, the Corporation is empowered to borrow money form the financial institutions or Non-Resident Indians of from the open market by issue of guaranteed or unguaranteed bonds, debentures, stocks etc., for not exceeding and amount of rupees one thousand crores. The subscription to the bonds to be issued is expected to be around rupees one thousand crores and in addition the Corporation has outstanding loans to the extent of rupees two hundred and seventy crores as on date. Therefore, the Government have decided to enhance the maximum limit of borrowing from rupees one thousand crores to rupees two thousand crores, so as to enable the Corporation to borrow money from the said financial institutions or organizations. To give effect to the above decision it is necessary to amend the said Act, suitably.

As the Legislative Assembly of the State was not then in session having been dissolved and it has been decided to give effect the above decision immediately, the Andhra Pradesh Water Resources Development Corporation (Amendment) Ordinance, 2003 was promulgated by the Governor on the 2nd December, 2003.

The Bill seeks to replace the said Ordinance.