loan amount will be released once the state government approves it, official sources said. The corporation wants the state government to be the guarantor. As the interest is over 10 percent, the government is yet to take any decision, said a senior officer.

"We hope the government will remain guarantor for implementation of the project, a longstanding demand of the city," said MLA (Berhampur) R C Chyaupatnaik.

Chief Minister Naveen Patnaik recently reviewed different projects, particularly the drinking water scheme. He emphasised on timely completion of the projects.

"Since the government is giving much emphasis on the projects, we are optimistic it will approve the loan proposal," said the MLA. Moreover, it's the CM, who laid foundation stone of the project on October 3 last year.

Hudco officials recently visited the city to discuss the project. The Rs 415-crore scheme envisages drawing water from Janibili diversion wire, 47 km from here, through underground pipes, setting up of a water treatment plant of 75 million litre per day (MLD) and laying 37-km pipeline to supply water to uncovered areas, said executive engineer, public health engineering department, P K Mohapatra.

The drinking water problem of the city will be solved once the project is implemented as it will provide 200 MLD, said an engineer.

At present, the city requires 52 MLD. It is getting 50 MLD from various sources like DakhiNapur reservoir and Rushikulya water supply system. The city faces acute drinking water crisis during summer when water supply from Rushikulya system depletes.

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