IANS | 25 Oct, 2023
The Asian Development Bank (ADB) has approved a $400 million loan to
support the Indian government in improving the quality of urban life
through the creation of high-quality urban infrastructure, assured
public services, and efficient governance systems.
The loan under
Subprogramme 2 will support investment planning and reform actions at
the state and urban local body (ULB) levels, the ADB said.
“India
has recognised the potential for cities to be centers of economic
growth and has emphasised the need to make cities livable through
inclusive, resilient, and sustainable infrastructure, which is also in
line with ADB Strategy 2030,” said ADB Principal Urban Development
Specialist Sanjay Joshi.
“The national flagship program of Atal
Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 is
targeted for universal access of water supply and sanitation and to
ensure urban water security through reducing water losses, recycling
treated sewage for non-domestic use, rejuvenation of water bodies, and
maintaining sustainable ground water levels," the ADB statement said
with reference to the loan.
ADB will continue to provide knowledge
and advisory support to the Ministry of Housing and Urban Affairs in
program implementation, including monitoring and evaluation. ADB will
focus on lower-income states, which require support in capacity
building, institutional strengthening, and policy reforms, the statement
added.
Cities will be incentivised to become creditworthy through
various reforms on enhancing their revenues such as property taxes and
user charges, improve their efficiencies, and rationalise their
expenditures. This will substantially help cities mobilize innovative
financing such as commercial borrowings, issuance of municipal bonds,
sub-sovereign debts, and public–private partnerships to bridge
significant deficit in urban infrastructure investments.
