Planning commision gives nod for $ 5 billion loan for urban sector

(posted under - Planning commision news) - Planning Commission has given a go-ahead to a proposed $5-bn World Bank loan for India’s urban sector. The Bank is now preparing a detailed concept note indicating what should be the main components of the loan.

Though the Bank had originally proposed to provide $3.8 bn loan for the urban sector, the ministry of urban development requested the Bank to increase the amount to at least $5 bn, or about Rs 25,000 crore.

It has not yet been decided as to which cities will benefit from the Bank’s loan, but it’s believed that many of the 63 Mission cities under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) will get a share of the cake. The government has also decided to add 28 more cities to the list.

With the Plan panel giving its nod, and the finance ministry on board, the loan could be disbursed in 12-18 months, said the official.

No Change in Tax Structure - MS Ahluwalia

Planning Commission deputy chairman Montek Singh Ahluwalia on Tuesday ruled out the possibility of any further change in the tax structure in the current fiscal(2008-09). "The government has already taken enough fiscal measures to boost the domestic economy," Mr MS Ahluwalia said.

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"We feel whatever has been done is sufficient and have not proposed another stimulus package for this financial year. Whatever has been done so far is sufficient and should be implemented," Mr Ahluwalia said in a conference organised by industry body FICCI.


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