Aizawl: The Mizoram government’s Finance department has signed a loan agreement with the Asian Development Bank (ADB) in a bid to strengthen healthcare in the state under the Mizoram Universal Health Care Scheme (MUHCS).
According to an official statement from the State Finance Department, the agreement, signed on January 23 at the ADB Headquarters in Manila. The agreement secures to avail a loan of approximately Rs 800 crore aimed at fortifying the state’s healthcare infrastructure.
The agreement was signed by Baldeo Purusartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, on behalf of India; Mio Oka, Country Director, ADB India Resident Mission, on behalf of ADB; and Ramchuana, Finance Secretary, Government of Mizoram, who signed the agreement electronically.
As the loan is categorized under Externally Aided Projects (EAP), the Central Government will be responsible for the primary repayment.
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The ADB loan carries a Secured Overnight Financing Rate (SOFR) of approximately 3.6% per annum.
Under the funding arrangement, 90 per cent of the loan amount will be provided to Mizoram as a grant, while the remaining 10 per cent (approximately Rs 80 crore) will be extended to the state as a loan.
The interest rate for the state’s share will be determined by the Ministry of Finance and is expected to align with State Development Loans, estimated at 7–8 per cent.
The project was originally proposed in May 2022 as an enhancement of the “Corpus Fund” for the state’s healthcare scheme. Despite initial approval by the Ministry of Finance, the proposal faced administrative hurdles.
