Some Development Loans Sanctioned Recently
- $ 100 Million to Mizoram by Asian Development Bank
Mizoram will get $ 100 Million from Asian Development Bank. The loan will be utilized to strengthen the service delivery in the social sector (Education & Health) under the aegis of a state programme called Mizoram Public Resource Management Programme (MPRMP)
- $ 330 Million to Haryana by World Bank
World Bank will give $ 330 million to Haryana to strengthen the power transmission and distribution system in the state. This loan is of 30-year maturity including a five-year grace period.
- $ 200 Million Loan from ADB for North East India
On August 8, 2009 Government of India signed a loan agreement of $ 200 million with Asian Development Bank for developing urban infrastructure in 5 capital cities of North-Eastern states and the East-West highway project under North Eastern Urban Development Programme (NEUDP)
What is North Eastern Urban Development Programme (NEUDP) ?
North Eastern Region Urban Development Programme (NERUDP) will be implemented by the Ministry of Urban Development (MoUD) in two phases.
Phase – I covers capital cities of 5 North Eastern States viz. Agartala (Tripura), Aizawl (Mizoram), Gangtok (Sikkim), Kohima (Nagaland) and Shillong (Meghalaya). Total Cost of this phase I of project is $ 285.7 million.
The states of Arunachal Pradesh, Assam and Manipur would be covered in Phase – II.
The project (Phase-I) was approved by the Cabinet Committee on Economic Affairs (CCEA) in its meeting held on February 26, 2009
From where will come $ 285.7 milllion?
Out of this amount $ 87.5 million will be borne by Government of India through Gross Budgetary Support (GBS) of the MoUD (Ministry of Urban Development). Remaining 70% cost of the project (i.e. $200 million or INR 960 crore) will be given by ADB as loan and passed on by the MoUD to the participating States through its budget.
Is it a Loan or Grant ?
90% of the project cost (i.e. $ 257.1 million or INR 1234.1 crore) will be passed on to the participating states as grant and 10% (i.e $ 28.6 million or INR 137.3 crore) loan.