Regional international financial institution, the Asian Development Bank (ADB) has agreed to provide 100 million US dollar in loan for Uttarakhand.

The ADB signed an agreement with the government of India for the loan, which is a part of the second phase of urban sector development investment programme in the northern Indian state of Uttarakhand. The loan will be used to revive and expand basic urban infrastructure in five main cities in the state.

The loan from the ADB is also aimed at making sure that the municipal service delivery is sustainable in the long term. It will be a part of the urban infrastructure programme, which already started in Nanital, Haridwar and Dehra Dun. The loan will allow the authorities to include towns like Ramnagar, Roorkee and Haldwani. The funds will be used mainly for improving water supply infrastructure and is likely to benefit about 800000 residents in the state.

Department of Economic Affairs Joint Secretary Anup Wadhawan and Uttarakhand’s Urban Development Secretary M. H. Khan signed the agreement with the development bank. The second tranche of loan has a 25 year term including a grace period of five years.