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Government of India and the World Bank sign agreement for Tamil Nadu Housing Sector Strengthening Programme

Indian Startup Chamber

Admin
  • July 07, 2020
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A legal agreement was signed between the Government of India, the Government of Tamil Nadu and the World Bank which is aimed at providing affordable house to the low-income group in the state of Tamil Nadu. The two projects which are included in the agreement are First Tamil Nadu Housing Sector Strengthening Programme worth $200 million and Tamil Nadu Housing and Habitat Development Project which is of worth $50 million. The project will help reduce the regulatory barriers and will encourage private sector participation in the project.


From central government Sameer Kumar Khare Additional Secretary, Department of Economic Affairs and from World Bank Mr Junaid Kamal Ahmad, Country Director (India) were present to sign the loan agreements. Shri Hitesh Kumar S. Makwana, Principal Resident Commissioner, on behalf of the Government of Tamil Nadu and Shri Junaid Kamal Ahmad on behalf of the World Bank signed the project agreement.


Half of the Tamil Nadu’s population live in urban areas and it is estimated that it will increase by 63 % by 2030, thus Pradhan Mantri Awas Yojna along with these two projects will provide people better housing. Tamil Nadu Housing and Habitat Development Project will support Tamil Nadu Shelter Fund (TNSF) by contributing $35 million. The funding to TNSF will help the high-income from large commercial development to compensate for low income from these affordable housing project.


The fund of the project will also strengthen the institutions like Tamil Nadu Slum Clearance Board, Chennai Metropolitan Development Authority and Tamil Nadu Infrastructure Fund Management Corporation Limited which will in turn help to transform the housing sector in the state. The loan of $200 million and $50 million from the world bank has been provided for a maturity period of 20 year including a grace period of 3.5 years.

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