German bank to set up urban infrastructure fund in India

NEW DELHI: Civic amenities in the country may get a much-needed boost if the government allows a German bank to set up a dedicated urban infrastructure fund in India.

KfW, the German bank, has approached the government to do a feasibility study for setting up an urban infrastructure fund in the country, Urban Development Secretary M Ramachandran told PTI.

The fund can be utilised in sewerage treatment plant, drainage system, roads, bridges, solid waste management, parking lot and drinking water projects.

The Department of Economic Affairs is examining the bank's proposal and the decision is awaited.

If the Finance Ministry approves the KfW proposal then a dedicated fund for urban sector can be created which would help in strengthening urban infrastructure in the country, said Ramachandran.

The objective of the proposed fund is to promote and finance public-private partnership projects in urban sector.

He pointed out that the government is implementing many such projects in urban areas under Jawaharlal Nehru National Urban Mission (JNNURM) in the country and besides KfW many foreign agencies want to get involved.

Cities at present are under severe stress to provide civic services at a satisfactory level, particularly water supply, sewerage, solid waste management, road and transport. These services and infrastructure need to be improved expeditiously to cope with the urban growth.