The government has inked two loan agreements of Rs 2,074 crore with Asian Development Bank (ADB) for an affordable housing project in Tamil Nadu and a water sanitation programme in Uttarakhand, a release said on Tuesday.
The government and the ADB signed a USD 150 million (around Rs 1,132 crore) loan agreement to provide access to inclusive, resilient, and sustainable housing for the urban poor in the state of Tamil Nadu.
Separately, a USD 125 million (around Rs 942 crore) loan was inked to improve access to safe and affordable drinking water supply and citywide inclusive sanitation services in Dehradun and Nainital cities in Uttarakhand, the release said.
The affordable housing project is aligned with the government’s development priorities and policies on urban sector development, particularly the flagship programme PMAY-Housing for All (Urban), it stated.
“Rapid urbanization and growth in Tamil Nadu has created a housing shortfall particularly for low-income households. The project will provide access to affordable housing infrastructure and services to vulnerable and disadvantaged households and catalyze private sector investment in affordable housing, Takeo Konishi, Country Director of ADB’s India Resident Mission, said.
Nearly half of Tamil Nadu’s 72 million (7.2 crore) population lives in urban areas making it one of the most urbanized states in India, the release said.
Through the Tamil Nadu Urban Habitat Development Board, the project will construct housing units in nine different locations and relocate about 6,000 households vulnerable to natural hazards to safer locations among others.
A portion of the ADB loan will be invested by the state government as equity into the Tamil Nadu Shelter Fund.
For Uttarakhand project, the loan assistance will address the need for upgrading urban services in the fast-expanding capital city of Dehradun and Nainital which attracts thousands of tourists daily, according to a separate release.
The improved water and sanitation services will also promote better hygiene practices that will help protect people from future pandemic and epidemic diseases, Rajat Kumar Mishra, Additional Secretary, Ministry of Finance said.
The project complements previous ADB support to improve water supply and sanitation service (WSS) in the two cities with a focus on ensuring high-quality service delivery and a citywide sanitation approach to make it cost-effective,” Konishi said.
Under this project, 136 kilometers (km) of water pipe system will be constructed to replace defective water networks in South Dehradun to ensure reliable and continuous water supply to benefit an estimated 40,000 people, including 4,000 urban poor and vulnerable groups.
Water meters will also be installed in about 5,400 households to support efficient water use and consumption billing.
In addition, the project will establish sewage treatment plants in Dehradun, supported by 256 km of enclosed underground sewer networks and 117 km of storm water drainage networks benefiting an estimated 138,000 residents, including 15,000 urban poor and vulnerable people.
A total of 17,410 households in Dehradun will be connected to this sewerage system, said the release. ADB will provide a USD 250,000 technical assistance (TA) grant from its Technical Assistance Special Fund and another USD 750,000 grant from its Climate Change Fund for this project.
