On 29 June, The World Bank and the government of India signed an agreement along with the Government of Tamil Nadu to help the low-income groups in the state of Tamil Nadu to get access to affordable housing.
Legal agreements of two projects were signed to strengthen the state’s housing sector policies, institutions, and regulations.
- First Tamil Nadu Housing Sector Strengthening Programme worth $200 million(Rs 1,510 crore),
- Tamil Nadu Housing and Habitat Development Project worth $50 million (Rs 377 crore).
The loans from the IBRD (International Bank for Reconstruction and Development) have a maturity period of 20 years (including grace period: 3.5 years)
Agreements Signed by:
World Bank: Mr Junaid Kamal Ahmad, Country Director (India)
Government of India: Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance
Government of Tamil Nadu: Hitesh Kumar S. Makwana, Principal Resident Commissioner.
First Tamil Nadu Housing Sector Strengthening Programme:-
A loan for $200 million has been granted from IBRD.
It is a series of two single-tranche operations.
i) It supports the Government’s efforts to increase the availability of affordable housing by shifting the role of the state to an enabler.
ii) The second operation looks to deepen these measures to make affordable housing more efficient and inclusive.
Note:- The Tamil Nadu’s Urban population is expected to increase to 63 percent by 2030.
Tamil Nadu Housing and Habitat Development Project:-
A loan for $50 million has been approved from IBRD.
- The project helps support innovations in housing finance and strengthen housing sector institution
- It Finances to Tamil Nadu Shelter Fund(TNSF)
Tamil Nadu Shelter Fund (TNSF)
- It is an innovation in housing finance in India and provides equity contribution of $35 million.
- The project strengthens the capacity of housing institutions including Tamil Nadu Slum clearance board, Chennai Metropolitan Development Authority and Tamil Nadu Infrastructure Fund Management Corporation Limited, asset Management company of TNSF.
About World Bank:
Headquarters: Washington D.C., United States
President: David R. Malpass