India signs $63.3 million loan from ADB

India Tuesday signed a $63.3 million loan from the Asian Development Bank (ADB) for improving urban services in North Karnataka, the finance ministry said.

According to finance ministry, the agreement is for the fourth project under the overall facility of $270 million for the 'North Karnataka Urban Sector Investment Program'.

"The fourth and last tranche of loan under the program will help upgrade infrastructure, including expansion of the potable water systems to provide continuous water supply (24X7) with private sector participation in 12 towns," the ministry said.

Speaking on the occasion, Tarun Bajaj, joint secretary, department of economic affairs, ministry of finance in order to ensure adequate operation during initial years, water utility operators will be engaged through a performance based management contracts to provide metered connections.

"The program will support municipal governance program, leading to better municipal service through the use of geographic information systems for property tax mapping and utility mapping, as well as assist the government of Karnataka to establish a heritage planning cell under the town planning department, for conservation of heritage structures and sites in the state,"Bajaj said.

The ministry added that the complete investment program aims to improve basic urban services for at least 4.3 million people living in 25 North Karnataka towns by providing them with improved water supply, cleaner environmental conditions, safer and faster urban transportation, and other public facilities.