Indian Government signs agreement for Two Projects in Tamil Nadu with World Bank Group

On 29^th June 2020, an agreement was signed between the World Bank Group and the Government of India for providing urban poor in the state of Tamil Nadu access to affordable housing. The agreement signed has two projects under it- (i) Tamil Nadu Housing Sector Strengthening Program and (ii) Tamil Nadu Housing and Habitat Development Project.

The loans for both the project are from the lending arm of the World Bank Group the International Bank for Reconstruction and Development (IBRD). The maturity of both the loans including 3.5 years grace period is 20 years.

Tamil Nadu Housing Sector Strengthening Program

As per the agreement, a loan of USD 200 million has been sanctioned under the Program. The aim of the program is to support the ongoing efforts made by the government in the state for increasing affordable housing for low-income families. In order to achieve this, the program will work towards incentivizing the participation of the private sector by unlocking the barriers set by regulatory policies.

Tamil Nadu Housing and Habitat Development Project

For this project, a loan agreement of USD 50 million has been sanctioned as per the agreement. The objective of this project will be to strengthen the housing sector policies, regulations, and institutions of the state. Through the project, innovations in housing finance will also be supported.

Out of the USD 50 million for the project, as a part of innovation in housing finance, Tamil Nadu Shelter Fund will be provided an equity contribution of USD 35 million.

Month: Current Affairs - June, 2020