$150 million loan to provide affordable housing for urban poor in TN

CHENNAI: The Government of India and Asian Development Bank (ADB) signed a memorandum of understanding for a loan of $150 million to provide sustainable housing for urban poor in Tamil Nadu. Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, signed for the Government of India, and Takeo Konishi, Country Director, ADB’s India Resident Mission, signed for the ADB. The funds will be to provide inclusive, resilient and sustainable housing for the urban poor in the state.

Mishra said that the project is in line with the development priorities of the central government and policies of urban development. It particularly aligns with the flagship programme PMAY-Housing for All (Urban). The project, he said, will address the housing shortage among urban poor dwellers in the state. Konishi said that the rapid urbanisation and growth in Tamil Nadu has created a housing shortfall particularly for low-income households. The project will provide access to affordable housing infrastructure, services to vulnerable and disadvantaged households and catalyse private sector investment in affordable housing.

More than half of the population in Tamil Nadu lives in urban areas. The project, through Tamil Nadu Urban Habitat Development Board, will construct housing units in nine different locations and relocate about 6000 households, vulnerable to natural hazards, to safer locations. The project is also expected to help Directorate of Town and Country Planning, Government of Tamil Nadu in developing regional plans to map the state’s economic and infrastructure development, which includes affordable housing, environmental protection, disaster risk management, and gender.