New Delhi, In a significant development, France’s development agency AFD and Germany’s KfW Bank are currently engaged in discussions with Indian authorities to extend a substantial €100 million loan. The purpose of this funding is to support India’s ambitious urban infrastructure plan, known as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) mission.
Negotiations for this crucial loan are slated for early 2024, with the formal signing anticipated in February. This collaborative effort follows closely on the heels of the recent collaboration between France and Germany in the City Investments to Innovate, Integrate, and Sustain (CITIIS 2.0) program. In this four-year initiative, both countries contributed €100 million each, focusing on urban renewal and sustainable waste management.
The Union Cabinet had greenlit the AMRUT mission in May 2023, outlining its vision to provide universal coverage of sewerage and septage management systems in 500 cities. The program’s goals include supporting competitively selected projects promoting a circular economy, integrated waste management at the city level, climate-oriented reform actions at the state level, and institutional strengthening and knowledge dissemination at the national level.
Both France and Germany have a history of funding transformative projects in India. France’s AFD, for instance, played a vital role in the CITIIS 1.0 program, providing technical expertise to the government’s Smart Cities Mission in Nagpur, Pondicherry, and Chandigarh. Moreover, it has been a financial supporter of metro projects in various Indian cities.
Similarly, Germany’s KfW Bank, specializing in official development finance, has actively invested in India’s infrastructure projects, including funding for metro projects and plans to support the PM E-Bus Sewa scheme.
The AMRUT 2.0 mission, launched in October 2021 for a five-year period (FY22 to FY26), aims to provide comprehensive coverage of sewerage and septage management systems in 500 cities. By the end of FY23, significant progress had been made, with the approval of State Water Action Plans for over 6,500 projects.
This collaborative effort between India, France, and Germany underscores the shared commitment to sustainable urban development, ushering in a new era of transformative projects and efficient urban infrastructure.
