Afternoon D & C Dedicated To Mumbai
Home > Business > 'States can borrow directly from foreign agencies for infra projects'

'States can borrow directly from foreign agencies for infra projects'

Thursday, April 20, 2017

New Delhi: The government allowed state entities to borrow directly from bilateral overseas lending agencies like JICA to fund infrastructure projects.

The decision would directly benefit important projects such as Mumbai trans-harbour link (MTHL), Finance Minister Arun Jaitley told reporters here. The decision was taken by the Union Cabinet chaired by Prime Minister Narendra Modi.

The government "has approved the policy guidelines to allow financially sound state government entities to borrow directly from bilateral ODA (Official development Assistance) partners for implementation of vital infrastructure projects," an official statement said.

The Mumbai Metropolitan Region Development Authority (MMRDA), a state government entity, has also been allowed to borrow directly from Japan International Cooperation Agency (JICA) for implementation of MTHL project. The estimated project cost for MTHL is Rs 17,854 crore, out of which JICA loan portion is expected to be Rs 15,109 crore.

The guidelines will help state entities to directly borrow from the external bilateral funding agencies and they would have to repay the loans and interests.

While state governments will furnish guarantee for the loan, the Centre will provide counter guarantee.

External assistance today plays a supportive role in financing major infrastructure projects, social sector projects and in building up institutional capacity.

Jaitley said the decision will help states manage their Fiscal Responsibility and Budget Management (FRBM) targets.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
Email:    
Comments:
 
We are married for four years. I periodically dev
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)Concentrate on work else you could lose some money through neglect or indifference. Stay clear of fresh proposals and also from those people who are known to give unwanted advice. You are better judge of your condition and take all measures to protect your job or financial interests. At a family gathering you may not like the overtures or attention of a person who is a pest, say so in your own interest. You will not be hurting anyone.
- Advertising -
Step away from generic star studded mobile phone
Having a happy period is rather oxymoronic; but t
Going to bed hungry is never a good idea, and a b
Read More