The fund would help in developing infrastructure facilities, attract private investors and encourage public-private partnerships in the national capital region  The Asian Development Bank (ADB) has come forward to improve urban infrastructure in the national capital region (NCR), which is likely to witness a population spurt from the current 37 million (mn) to 64 mn by 2021.A US$150-million financial aid will be offered to India, facilitating the government develop infrastructure facilities, attract private investors and encourage public-private partnerships in the NCR, announced ADB recently.
According to a recent statement released by ADB, the India National Capital Region Urban Infrastructure Financing Facility has already been sanctioned by the bank’s board of directors and the fund will be disbursed in two or more tranches.
In the first tranche, an amount of US$78 mn will be disbursed and the loan term would be 25 years with a 5-year grace period. The annual interest rate for the same would be fixed in accordance with the bank’s LIBOR[i]-based lending facility.
The NCR Planning Board will further provide US$50 mn for targeted investments. “Infrastructure development has been dominating the government focus in recent times and the ADB fund is likely to boost infrastructure services in the NCR, opening up opportunities for urban planners, contractors and infrastructure consulting firms,” says Anuj Sharma, a Noida-based analyst.
Govt initiatives
Of late, answering to a question in Rajya Sabha, minister of state, Urban Development Saugata Roy spoke about the various government measures, including the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) launched in 2005-06, which has been undertaken to improve infrastructure services in urban India.
Elaborating further, Mr Roy said, under the 10% Lump Sum scheme the Ministry of Urban Development provides financial assistance to the country’s north eastern region, comprising Sikkim.
In addition, with ADB’s assistance two new schemes were launched in 2009, which are as follows:
Ø North Eastern Region Urban Development Programme (NERUDP) including cities such as Agartala, Shillong, Aizawl, Kohima and Gangtok
Ø Scheme for infrastructure development in the satellite towns around the seven mega cities; the identified satellite towns include New Town(West Bengal), Vikarabad (Andhra Pradesh), Vasai-Virar (Maharashtra), Sanand (Gujarat), Pilkhua (Uttar Pradesh), Sonipat (Haryana), Hoskote (Karnataka), and Sriperumbudur (Tamil Nadu).
While the cumulative government assistance under JNNURM programme was envisaged at Rs 50,000 crore during the period 2005-12, the revised estimates for water supply, sewerage, sanitation, drainage, solid waste management and urban transport stand at Rs 2,61,809 crore and housing requirements at Rs 5,10,000 crore for the period of 2007-12.
Jeeta Bandopadhyay
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