The Government of India, Government of Kerala, and the World Bank have signed a loan agreement of $250 million for the Resilient Kerala Programme.
The Development Policy Loan (DPL) agreement was signed in New Delhi on Friday by Sameer Kumar Khare on behalf of the Union government; Manoj Joshi, Additional Chief Secretary, Finance, Kerala; and Junaid Ahmad, Country Director, World Bank India.
First in India
The programme, which represents the maiden State partnership of the World Bank in India, is the first of two development policy operations to mainstream disaster and climate resilience into critical infrastructure and services. The World Bank support is the first from an international funding agency after the deluge.
Of the $250 million being provided, $160 million is on ‘easy terms’, an interest of less than 1.5% with a repayment period of 30 years. For the balance amount, the interest will be 4% and repayment period will be 20 years plus a ‘grace period’ or moratorium of five years.
The aid will be made available to the exchequer as budgetary support through the Department of Economic Affairs and the State will have the flexibility for disbursing the funds for achieving targets set under the Rebuild Kerala Initiative.
Improved river basin planning and water infrastructure operations management, water supply and sanitation services, resilient and sustainable agriculture, enhanced agriculture risk insurance, improved resilience of the core road network, unified and more up-to-date land records in high-risk areas, risk-based urban planning and strengthened expenditure planning by urban local bodies, and strengthened fiscal and public financial management capacity are the highlights of the programme, according to the World Bank.
“This partnership will identify key areas of policy and institutional strengthening to maximise development impact,” said Mr. Khare, Additional Secretary in the Department of Economic Affairs, Ministry of Finance.
