The state government has announced the creation of a revolving fund for sanction of loans from Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to the Urban Local Bodies in the state.
For sanctioning of loans under the JNNURM it has put certain terms and conditions. The unutilised funds and the interest accrued thereon will be pooled into the revolving fund and will be released as loans to the implementing agencies of mission cities and to put up terms and conditions of repayment of these loans.
The unused funds will be utilised as per the JNNURM guidelines for projects of urban local bodies. The objective is to utilise the funds for infra projects or to leverage market funds for financing further investment to create sustainable infrastructure projects in the ULBs.
The municipal administration and urban development (MAUD) issued orders, approving the terms and conditions for sanction of loans to Urban Local Bodies from JNNURM revolving fund on Monday.
Terms and conditions include development of all infrastructure works, development of urban fringes, urban renewal, increasing the provision of serviced land and sites, houses at affordable costs specially for the urban poor, to meet the growing urban needs, etc.