The French government-sponsored Agency (French Development Agency) in Paris has consented to provide a soft loan of Rs 1,400 crores for the project to augment the drinking water supply and also for laying underground drainage pipes in the Union Territory, Chief Minister V Narayanasamy told reporter here.
In the first phase, Rs 534 crores out of the total loan approved by the Agency would be spent for Puducherry region to augment water supply.
PWD and Local Administration Minister A Namassivayam said, the territorial government had inked a Memorandum of Understanding with the French Agency in New Delhi recently for the allocation of Rs 534 crores.
The government would soon constitute a special purpose vehicle to implement the Smart City project sanctioned for Puducherry by the Union Urban Development Ministry involving an investment of Rs 3,250 crores which includes allocation by the Centre and French government, he added.