WB, ADB may lend directly to urban bodies
THE government may allow multilateral funding agencies such as World Bank and Asian Development Bank (ADB) to directly extend debt to urban local bodies (ULB). At present, the grants are routed through the central government, which passes it to the states. The move is expected to provide an alternative portfolio of fund-raising to ULBs marred by finance constraints. It will also fast-track the process of fund-raising for developmental activities. The urban development ministry is considering the proposal to allow the multilateral agencies extend financial support to ULBs.