Puducherry Secures Major ADB Loan for Infrastructure Boom

Puducherry Chief Minister N Rangasamy announced a Rs 4,250 crore loan from the ADB for infrastructure projects. Plans include a desalination plant and road improvements. Additionally, a Rs 129.56 crore sanction from the central government will fund various projects to be completed by 2026.

Puducherry Chief Minister N Rangasamy announced on Friday that the Asian Development Bank (ADB) has approved a substantial soft loan amounting to Rs 4,250 crores for the development of infrastructure in the region.

The loan, part of ADB's soft loan scheme, carries interest rates between three to four percent and is set to be repaid over 50 years, Rangasamy informed reporters. The funds will be directed towards crucial projects like constructing a desalination plant for uninterrupted water supply, building bed dams, and upgrading road networks to alleviate traffic congestion.

In addition to the ADB loan, the central government has granted Rs 129.56 crores for 'Special Assistance to States for Capital Investment,' covering part of the Rs 211 crores requested by Puducherry. The Public Works Department, Electricity, and Local Administration Departments will oversee 14 projects, including bridge constructions, to be finalized by March 2026. PWD Minister K Lakshminarayanan noted that these funds were provided outside of regular budget allocations.

(With inputs from agencies.)