Date:26/11/2007 URL: http://www.thehindu.com/2007/11/26/stories/2007112655370100.htm

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Japan Bank to fund drinking water scheme

S. Ganesan

TIRUCHI: The Japan Bank for International Cooperation (JBIC) has agreed to fund the Rs.144.86-crore drinking water supply augmentation scheme for the city.

The foundation stone for the scheme was laid recently by Chief Minister M.Karunanidhi. The Tiruchi Corporation has planned to step up the per capita drinking water supply in the city to 135 litres a day and also ensure equitable distribution to all parts of the city through the proposed scheme. The scheme is to be implemented through the Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL).

Agreement in January

“The Finance Committee of the JBIC has recently approved the project. The agreement is likely to be signed by January after the completion of the required procedures,” the Corporation Commissioner T.T.Balsamy told The Hindu.

The JBIC would extend a loan of Rs.93.16 crore and the State would provide a grant of Rs.25 crore to the Corporation for the scheme. About Rs.24 crore would be the public and Corporation’s contribution. Though indications are that the long term loan would be offered at an annual interest rate of about 8.5 per cent, the Corporation is planning to press the bank to make it a soft loan.