Kerala - Kozhikode   

`Kozhikode Corporation likely to accept ADB loan'

Staff Reporter

Council to take final decision soon

Kozhikode: Mayor M. Bhaskaran has ruled out the possibility of the city council refusing to accept the proposed loans from the Asian Development Bank (ADB) for the comprehensive development of Kozhikode city.

Speaking to The Hindu here on Sunday, Mr. Bhaskaran said a special meeting would be convened next week or early in January to take a final decision on availing loans from the Manila-based international funding agency. The State Government had asked the five municipal corporations to take a decision in this regard before December 31.

Local Self-Government principal secretary S.M. Vijayanand and Local Administration Department (Urban Affairs) secretary P. Kamal Kutty had briefed the councillors of the Kozhikode Corporation at a special meeting here a fortnight ago. The exercise had been primarily aimed at clearing the doubts regarding the terms and conditions of the loans and the repayment options.

A high-level meeting of the five Mayors of the State will also be held prior to the municipal corporations taking a decision on the issue. Moreover, the Communist Party of India (Marxist) will have a major say in the decision-making. "The party is also not against receiving the loans. But we insist that availing the loans should not be done at the cost of discrediting the local body, " Mr. Bhaskaran said.

Last week, the Kochi Corporation had held a preliminary round of discussion on availing the loans. However, some councillors, including those belonging to the CPI(M), had opposed a resolution moved by Mayor Mercy Williams calling for objections and suggestion while finalising the loan agreement with the ADB.

Mr. Bhaskaran said the State Government had taken the decision that the municipal corporations availing the loans could repay them from their own fund or Plan fund. Funds would be reimbursed through the Plan fund annually.

The loans are provided from the ordinary capital reserves of the ADB with contribution from the State Government and the corporations. ADB will give 70 per cent as loans and 30 per cent grants. Earlier, it was decided that the State Government and the corporation would equally share the amount. But after the latest round of talks, it has been decided that the State Government will contribute 19 per cent and the corporation 11 per cent of the amount, Mr. Bhaskaran said.

The loans will have an amortization period of 25 years as well as a grace period of five years. The interest rate will be 4.9 per cent per annum.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

`Kozhikode Corporation likely to accept ADB loan'
Christmas celebrated with traditional fervour
Moulavi's belongings to be exhibited
Library becomes computerised
Consumer Day observed
In Kozhikode Today

Copyright © 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu