Centre clears Jharkhand's proposal for $210-mn WB loan

Loan seeks to address to some extent huge investment requirements of state in developing urban infrastructure

The Centre has cleared a proposal from the Jharkhand government for a $210 million assistance from the World Bank for urban infrastructure projects.

The proposed World Bank funding, with a state government commitment of $90 million, will address to some extent the huge investment requirements of the state in developing urban infrastructure and strengthening relevant state-level urban sector institutions.

"The Union Finance Ministry has recommended state's proposal for $210 million (Rs 1,365 crore) World Bank assistance for Jharkhand Sustainable Urban Development Project. We are working out detailed project reports as the assistance is likely soon," Principal Secretary, Urban Development Department, Jharkhand, Arun Kumar Singh told PTI.

Singh said the state government has already committed $90 million (Rs 585 crore) for the project.

"The projects under Jharkhand Sustainable Urban Development Project pertain to strengthening state's transportation system, augmenting its road infrastructure besides projects pertaining to Subarnrekha river," Singh said.

He said Jharkhand's total urban investment requirement was pegged at Rs 13,281 crore and after expected grants etc from various sources its net investment gap was assessed at Rs 9,996 crore.

"Given the backlog in investments, the requirements of urban infrastructure in the state are substantial. Since the amount of funding from the World Bank is limited to $210 million, the Project will be able to address a sub-set of infrastructure sub-projects across the state," Singh said.

He said the Project is well aligned with the new national urban agenda of the country as outlined through various national urban missions of the Government of India, such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Swach Bharat Mission and the Smart Cities Mission.