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7 sisters, Sikkim to get ADB loan for infrastructure

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Smita Aggarwal Posted: Aug 07, 2008 at 0121 hrs IST
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New Delhi, August 6: The Government trying to put its best foot forward, in the north east region, has decided to take up its development on a fast track. Plagued by multiple problems under the ongoing urban infrastructure development scheme — Jawaharlal Nehru National Urban Renewal Mission — stalling the progress of the scheme in the eight north-eastern states, the government has approached the Asian Development Bank (ADB) for a substantial loan for up-gradation of cities identified under JNNURM.

Speaking to The Indian Express, urban development secretary M Ramachandran confirmed the development. ADB will be providing credit to the tune of $200-300 million to the government to carry out its urban infrastructure and governance related projects in the region. “The projects under this scheme will be spread over seven to eight years. The process for identifying projects has already started,” informed Ramachandran.

The ministry has initiated the consultation process with concerned states and asked for appraisal reports of selected cities. Later, the projects will be identified and the concerned cities will have to submit Detailed Project Reports (DPR). The government will fund these schemes up to ten per cent of the total project cost and some portion may be funded from concerned state’s Plan fund. For this, the proposal will be taken to Expenditure Finance Committee and cabinet committee approval will be sought thereupon.

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For the appraisal process of these cities, progress of reform process of ongoing projects under JNNURM will be taken note of.

Under JNNURM, these cities have registered little progress as many of them do not have local governance set up or a municipality, a pre-requisite for sanctioning of projects. However, three of the states, Manipur, Mizoram and Sikkim have already committed to forming the third tier of governance in the state and have legislated for formation of such a body.

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