In a major step towards realising the Smart City project here, the French government inked a pact with Union Finance Ministry to provide financial assistance to the Puducherry Government.
Just a week after the Union Ministry of Urban Development selected Puducherry for the Smart City project, Deputy Director of Agence Francaise Developpment (AFD) Herve Dubreuil signed a Memorandum of Understanding with Joint Director of Union Ministry of Finance Selvakumar to provide financial support for the territorial administration to implement the project. The MoU was signed in the presence of Minister for Public Works A. Namassivayam in New Delhi on Friday. As per the agreement, AFD, the French bilateral development agency, would provide the first tranche of ₹535 crore out of a soft loan of ₹1,400 crore to the Union Territory for the Smart City project. A major portion of the funding would come from the Centre.
One more agreement
Chief Minister V. Narayanasamy told The Hindu that since it was a bilateral agreement, an MoU had to be signed between AFD and the Union Government.
A delegation from AFD would visit Puducherry next week to sign another agreement with the territorial administration, he added.
Terming the agreement as a major milestone, he said it would hasten implementation of the project.
The project, involving an investment of ₹1,800 crore, would help in improving the infrastructure of the town.
In its detailed project report, the territorial administration had mooted setting up of an administrative and a commercial complex at Swadeshi Mill, a multi-level parking lot at Old Jail, modernisation of the new bus stand, setting up of a desalination plant, remodelling of sewerage system and extending beach promenade.
