HUDCO sanctioned Rs 53 crore loan to the cash-strapped Amritsar Municipal Corporation on Tuesday to carry out development work in Amritsar.
Municipal commissioner DPS Kharbanda said the loan was sanctioned during a meeting held on Monday.
The MC, running short of funds for city's development, had applied for loan amounting to Rs 150 crore from HUDCO and the Bank of India about six months ago. Kharbanda said the sanctioned amount was a part of the loan that the MC had sought from HUDCO. It would go a long way in aiding the development in the city, he added.
Kharbanda further said at least Rs 35 crore would be spent on development works, including repair and laying of new roads etc, out of the sanctioned amount.
"Nearly Rs 14 crore would be spent on the city bus service. Apart from this, Rs 30 lakh would be spent on the development of all the wards in the city," he said.