ADB approves $150 million loan for urban housing project in Tamil Nadu
Asian Development Bank (ADB) approved a $150 million (approximately Rs 1,095 crores) loan for a sustainable housing project for the urban poor in Tamil Nadu. Read all you need to know.
Urban Housing Project in Tamil Nadu: Multilateral funding agency Asian Development Bank (ADB) on September 3, 2021, approved a $150 million (approximately Rs 1,095 crores) loan for a sustainable housing project for the urban poor in Tamil Nadu. ADB in a release stated that the aim of the loan is to provide access to inclusive, resilient, and sustainable housing for the urban poor in Tamil Nadu. The agency highlighted that Tamil Nadu is vital to India’s economic growth, which is currently contributing 8.54 per cent to the Gross Domestic Product (GDP).
The economic opportunities have boosted the rural-urban migration rate in Tamil Nadu which already has one of the highest urbanization rates in India.
Ricardo Carlos Barba, ADB Principal Safeguards Specialist for South Asia said that the housing shortfall in Tamil Nadu accounts for 6.66 per cent of the national deficit, and when mapped against income level, low-income households bear most of the shortage.
ADB approves $150 million loan for urban poor housing project in Tamil Nadu: Significance
The aim of the $150 million loan approved by the Asian Development Bank (ABD) for a sustainable housing project for the urban poor in Tamil Nadu is to offer vulnerable and disadvantaged households access to inclusive, safe, affordable housing infrastructure and services.
Tamil Nadu has a population of more than 72 million (7.2 crores) of which half the population lives in urban areas. With the rapid urbanization and increasing urban population, the need for adequate urban infrastructure and services including housing will be significant, as per the ADB.
How will ADB's $150 million loan benefit urban poor housing project in Tamil Nadu: Key points
With the $150 million loan approved by the Asian Development Bank (ABD), through the Tamil Nadu Slum Clearance Board, the poor housing project will aid in constructing housing units in 9 different locations and relocating approximately 6,000 households vulnerable to natural hazards to safer locations.
The project will aid the Directorate of Town and Country Planning of Tamil Nadu in developing regional plans to map the state’s economic and infrastructure development including affordable housing, disaster risk management, environmental protection, and gender, said ADB.
A portion of the ADB’s $150 million loan will be invested by the State government as equity into the Tamil Nadu Shelter Fund to catalyze private sector financing and support investments mainly in industrial housing and working women’s hostels for low-income and migrant workers.
ADB will also provide a Technical Assistance (TA) grant worth $1.5 million (approximately 10.95 crores) from its Technical Assistance Special Fund to boost the capacity building of government agencies responsible for delivering affordable housing and regional planning in Tamil Nadu.
The Technical Assistance (TA) will identify and create successful approaches to affordable housing delivery, including the graduation program for vulnerable relocated beneficiaries. These approaches can be adopted in other cities and countries as well.
India and Asian Development Bank
India is the 4th largest shareholder and top borrower of Asian Development Bank (ADB) since 2010. The country was a founding member of the ADB in 1966. ADB has been working towards building India’s industrial competitiveness, create jobs, enable the growth of low-income states, and address environmental and climate changes.
Since 1986, ADB has sanctioned 252 sovereign loans to India, amounting to a total of $45.85 billion.