Date:15/12/2004 URL: http://www.thehindubusinessline.com/2004/12/15/stories/2004121501951704.htm

Back `Kerala Government to bear interest'

Our Bureau

THIRUVANANTHAPURAM: The State Government will bear the interest burden on the Asian Development Bank (ADB) loan package under negotiation for urban development projects in various municipal corporations in the State.

Announcing this to reporters, the Local Self-Government Minister, Mr K. Kutty Ahamed Kutty, said here that the Government did not wish to burden the municipal corporations with the commitment on the loan, which would come in the ratio of 75 per cent loan and 25 per cent grant. The Government would like to see that the local bodies are not burdened beyond their financial capacity, he said.

The Government would also ensure that the cut in the annual plan for the current year did not hurt the interests of the local bodies, the Minister added.