New IndPress

Mangalore, Jun 29: Mangalore City Corporation has decided to approach banks for loans for raising the matching grant of Rs 10 crore for the proposed Rs 40 crore-vented dam at Thumbe.

The fourth meeting of industrial captains convened at MCC building on Tuesday failed to realise the objective of raising Rs 10 crore on its own. ‘‘MCC is left with no option but change its plans and seek loans from banks,’’ MCC Mayor K Ashraff told this this website's newspaper when contacted.

As according to earlier plan New Mangalore Port Trust had promised to contribute Rs three crore, MCF four crore, GMR about Rs one crore and remaining money was to be shared between KIOCL, UB Group among others. MCF kept its word by agreeing to contribute Rs four crore.

NMPT’s offer to pay its annual water bills coming to the tune of Rs one crore in advance was rejected by MCC. ‘‘They said money above Rs one crore would require the approval of Shipping Ministry,’’ Mayor said and added that in view of paucity of time they had decided to go ahead without NMPT’s share.

Ruchi Soya has agreed in principle to contribute Rs 50 lakh and the remaining Rs 50 lakh will be shared between GMR group and another company. KIOCL which had been asked to contribute Rs 50 lakh abstained from the meeting, sources said.

The remaining amount of Rs five crore will now be raised from bank loans. MCC is left with little time as the next meeting convened by Finance Secretary in Bangalore on July 20 is likely to take a final decision on the tendering process for the Rs 40 crore vented dam project.