India inks USD 123 mn loan agreement with ADB

This is the second tranche of a loan amounting to USD 270 million (about Rs 1,224 crore) as investment for the project -- North Karnataka Urban Sector Investment Programme.

"The government of India, the state government of Karnataka and the ADB has signed a loan agreement worth USD 123 million for North Karnataka Urban Sector Investment Programme (Tranche 2), here today," the Finance Ministry said in a statement.

The first tranche for a loan amount of USD 33 million was signed in January 2008.

"Tranche 2 of the programme will assist the participating urban local bodies in rehabilitating existing and constructing new urban infrastructure facilities...," the statement said.

The project would involve renovating and constructing sewerage and drainage systems, water supply systems, infrastructure works in slums and community development programmes and construction of non-municipal infrastructure involving construction of fire station & quarters for firemen, district information centres and tourism facilities.

"Tranche 2 will also support the institutional reforms for the participating urban local bodies," it said.