AFD France to fund Nag riverfront development project

Nagpur: A France agency, Agence Francaise deDeveloppement (AFD), will fund the Nag riverfront development project of the Nagpur Municipal Corporation (NMC). AFD is likely to give Rs 1,054.58 crore (140 million Euros) of total estimated project cost of Rs 1,600 crore.

Union ministry of urban development, department of economic affairs and AFD France held meeting to fund various developmental projects on Friday at New Delhi. Ramnath Sonawane, CEO of Smart City special purpose vehicle— Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL)— was present in the meeting on behalf of the NMC.

NMC sources told TOI AFD France also decided to prepare detailed project report (DPR) of Nag riverfront development project. "NMC prepared concept plan of the project. Now AFD France team will visit the city, inspect Nag river and prepared DPR. AFD France decided to finalize DPR within one year. Then AFD France will approve the funds. Actually AFD France will give long term loan to the central government that to come as grant in aid to the NMC. Remaining cost of the project will have to be bore by the NMC," the sources said.

The NMC has worked out cost of the project to Rs 1,373.60 crore. Cost is likely to increase to Rs 1,600 crore as per rates prevailing in current condition.

Under riverfront development project, the NMC has proposed to develop banks and areas near the Nag river into tourist and recreational places. Spots like temples, gardens etc situated on the river's banks will be re-developed under the project.

Nag riverfront development project is second component of the river's rejuvenation. Already, the centre had approved Nag pollution abatement project of Rs 1,252.33 crore. Japan-based Japan International Cooperation Agency (JICA) has started the process to fund this project. Centre will bear share of 60%, 25% by state government and remaining by the NMC. Centre will raise its share from JICA on long term loan basis and give to the NMC in the form of grant in aid. This project will be executed first followed by riverfront development project.