The Asian Development Bank authorizes a loan of $150 million to develop urban housing in Tamil Nadu

The Asian Development Bank (ADB) has granted a loan of $150 million (about Rs 1,095 crore) to help Tamil Nadu's urban poor get access to inclusive, resilient, and sustainable housing.

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The Asian Development Bank authorises a loan of $150 million to develop urban housing in Tamil Nadu

The Asian Development Bank (ADB) has granted a loan of $150 million (about Rs 1,095 crore) to help Tamil Nadu’s urban poor get access to inclusive, resilient, and sustainable housing.

The state is critical to India’s economic growth, accounting for 8.54 percent of the country’s GDP. Economic possibilities have boosted rural-urban migration in the state, which already has one of India’s highest rates of urbanization. Tamil Nadu has a population of about 72 million people, with over half of them residing in cities. Rapid urbanization and population expansion will necessitate sufficient urban infrastructure and services, including housing.

“The housing shortage in Tamil Nadu amounts to 6.66 percent of the national deficit, and when plotted against income levels, low-income families face the brunt of the shortage,” said Ricardo Carlos Barba, ADB Principal Safeguards Specialist for South Asia. In a statement, he stated, “The goal is to offer vulnerable and disadvantaged households’ access to inclusive, safe, and affordable housing infrastructure and services.”

The initiative would build housing units in nine different areas and move around 6,000 households who are exposed to natural disasters to safer locations through the Tamil Nadu Slum Clearance Board. It will also assist the Directorate of Town and Country Planning in Tamil Nadu in developing regional plans to outline the state’s economic and infrastructure development, including affordable housing, environmental protection, disaster risk management, and gender equality.

The state government would put a portion of the ADB’s assistance into the Tamil Nadu Shelter Fund as equity to help catalyze private sector funding and support investments, primarily in industrial housing and working women’s hostels for low-income and migratory workers.

ADB will also give technical assistance (TA) grant of 1.5 million dollars (about Rs 11 crore) from its Technical Assistance Special Fund to enhance the capacity building of government agencies responsible for affordable housing and regional planning in Tamil Nadu. The TA will document effective affordable housing delivery techniques, such as the graduation program for disadvantaged relocation recipients, that may be replicated in other cities and countries.

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The Asian Development Bank authorizes a loan of $150 million to develop urban housing in Tamil Nadu
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The Asian Development Bank (ADB) has granted a loan of $150 million (about Rs 1,095 crore) to help Tamil Nadu's urban poor get access to inclusive, resilient, and sustainable housing.
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THE POLICY TIMES
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