The State committee of the ruling Left Democratic Front (LDF) has given the green signal to the State government to hold talks with World Bank representatives on taking a Rs.500-crore loan to strengthen local bodies.
Front convener Vaikom Viswan said the government had been asked to examine the conditions attached to the loan offer and take an appropriate decision at the level of the State Cabinet. The loan carries a 0.25 per cent interest and is repayable in 40 years. The loan amount could ultimately rise to Rs.1,000 crores, he added.
The loan was sought to be secured on account of the low interest burden and the Central government’s policy that State governments must explore availability of funds from other sources to support local self-government institutions.
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