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Asian Development Bank Gave 100 Million US Dollar Loan to Uttarakhand

The Union Government of India on 31 January 2013 signed an agreement with the Asian Development Bank (ADB) for 100 million US dollar loan.

Feb 2, 2013 12:51 IST

The Union Government of India on 31 January 2013 signed an agreement with the Asian Development Bank (ADB) for 100 million US dollar loan as second tranche of urban sector development investment programme of Uttarakhand.

The loan will provide support in terms of rehabilitation as well as expansion of the basic urban infrastructure in five main urban towns of Uttarakhand. The loan will also guarantee sustainable municipal service delivery.

The loan will help the urban infrastructure programme which was already started under first tranche in Nanital, Haridwar and Dehra Dun. Apart from this, the loan will also be extended to include the towns like Ramnagar, Roorkee and Haldwani. This will help primarily in improving water supply infrastructure which will provide benefit to around 800000 residents.
The agreement was signed by Department of Economic Affairs Joint Secretary Anup Wadhawan who acted on behalf of the Union Government, as well as Uttarakhand’s Urban Development Secretary M.H. Khan.

In the second tranche of loan from ADB, there is a 25 year term which also includes the grace period of 5 years along with the commitment charges of 0.15 per cent. It also additionally carries interest rate which will be determined along with the Manila-based multilateral agency’s LIBOR-based lending facility.

Apart from this, the complementary funds of 42.86 million US dollar will be provided by the Centre for the total second tranche project investment cost amounting to 142.86 million US dollar.