The Hindu Business Line : No anti-people clauses in ADB loan: Kerala Minister

Industry & Economy - Urban Development
Money & Banking - RBI & Other Central Banks
States - Kerala
No anti-people clauses in ADB loan: Kerala Minister

Our Bureau

Advertisement

Thiruvananthapuram Feb. 20 The Asian Development Bank (ADB) has changed the `anti-people' clauses in the agreement for extending loan for the urban development projects being implemented by the five corporations in Kerala, according to the Minister for Local Administration, Mr Paloli Mohamed Kutty.

The Minister said here on Tuesday that the State Government was forced to go in for the ADB loan due to the lack of funds to solve the pressing problems faced by the cities. The Centre also had put roadblocks to the State mobilising funds from domestic sources, even from cooperative institutions, for developmental activities, he said.

The previous Government had gone ahead with the proposal for taking the ADB loan without caring to seek changes in the `anti-people' clauses and this led to widespread protests throughout the State.

These clauses included giving the right to ADB to monitor the government's financial position; entrust own auditors to examine the government's accounts; appoint foreign consultants for the projects at huge fees; and levy penal interest from the State for unutilised amount.

Other clauses

There were also clauses for charging user fees for drinking water, sewerage and solid waste disposal; increasing of the rates by 22 per cent once in every three years; and removal of public water taps.

But these terms have now been changed. For instance, instead of the earlier clause that the State should discuss its financial statements with ADB, the present understanding is that only the financial matters pertaining to the projects would be discussed.

The condition on the removal of public water taps has also been changed. It has now been decided to install meters on the taps to measure the quantum of water used by the public. This was because as of now, the local bodies had to give a fixed amount to the Water Authority for each of the taps, irrespective of whether the taps had been used or not, the Minister said.

More Stories on : Urban Development | RBI & Other Central Banks | Kerala

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