The Hindu Business Line : ADB okays $971-m loan to India

$750 million will be used to support investments in the `Pradhan Mantri Gram Sadak Yojana', an initiative to provide all-weather roads in rural areas of the country.

Thiruvananthapuram , Dec. 24

THE Asian Development Bank (ADB) has approved financial assistance worth $971.2 million for India.

Of this amount, $750 million is for a financing facility to support the Central Government's scheme to build rural roads, while $221.2 million is a loan for a project to upgrade the infrastructure in five urban areas of Kerala, says an ADB press release.

The finance of $750 million will be used to support investments in the `Pradhan Mantri Gram Sadak Yojana', an initiative to provide all-weather roads in rural areas of the country, the release says. The financing facility will be used to construct or upgrade up to 30,000 kilometres of rural roads.

Funds from the facility will be provided over the next five years as multiple loans, each financing a clearly defined investment project. Assistance will also be provided in areas such as planning, design, operation of the infrastructure, road safety and road maintenance, the release adds.

The $221.2-million loan to Kerala will be used to improve the urban infrastructure in five municipalities — Thiruvananthapuram, Kollam, Kochi, Thrissur and Kozhikode. The loan is for 25 years, including a grace period of five years.

The Kerala Government's Local Self Government Department is the executing agency for the project, which is due to be completed by the end of 2011, the release says. The project is intended to address the deficiencies in Kerala's urban infrastructure, which has been unable to keep pace with the rate of urbanisation, and thus improve the State's growth prospects, the release adds.

Issues that will be addressed as part of the project include improvements to urban infrastructure and services including urban water supply, sewage and sanitation, urban drainage, roads and transportation and solid waste management. The project will also offer investments to other smaller urban local bodies in the State and support capacity building and project management.

More Stories on : Economy | Financial Institutions

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cable operators in a fix on HC order of only `U' certificate movies

ADB okays $971-m loan to India

Carbon credit prices seen at 7-9 euros a unit

POSCO's port project `will affect turtle nesting'

NMCE unlikely to launch futures in petro products

Aiyar asks OMCs to meet Bihar's LPG demand

NTPC to go ahead with coking coal import next fiscal

Govt will address India Inc's concerns over tax burden: PM

Sushma Berlia elected president of PHDCCI

PM to review rehab work in areas hit by tsunami