NEW DELHI: A rural water supply project funded by the New Development Bank (NDB), or Brics bank, is doing well in India’s northern hilly state of Himachal Pradesh and bringing hope to over a half-a-million people.

       Himachal Pradesh lacks sustainable infrastructure for the rural water supply,and hilly and difficult terrain makes the task more challenging.

       According to the NDB, around 42% of the people in the state have limited access to clean drinking water and are classified as partially covered for water supply.

       Non-availability of reliable water supply also causes the rural population to spend up to two hours for water fetching and storing related activities.

       The NDB’s loan of US$80mil (RM354mil) was sanctioned in December 202. The total estimated cost of the project is US$100mil (RM442mil). The remaining US$20mil (RM88.4mil) is to be borne by India.

       The soft loan has been provided to the Indian Government, which in turn has been passed on to the Himachal Pradesh state government. The loan is to be repaid in 20 years, with an additional five-year “grace period” and the project has already got the reimbursement of its first installment worth around 330 million Indian rupees (about US$4.25mil or RM19mil).

       The project is to be completed within a period of 44 months, including six “grace months.” It is to benefit people living in as many as 1,255 villages located across eight districts. — Xinhua