France announces 100 million euros loan for India’s CITIIS 2.0 programme

New Delhi, 1 November, 2023: On World Cities Day, the Minister of State for Development, Francophonie and International Partnerships of France, H.E. Ms Chrysoula Zacharopoulou, announced the conclusion of a 100 million euros loan agreement between the French Development Agency (AFD) and the Government of India. This loan supports India’s innovative and flagship Smart Cities Mission and builds on the CITIIS 1.0 programme, also supported by the European Union and implemented by National Institute of Urban Affairs (NIUA) under the auspices of the Ministry of Housing and Urban Affairs.

CITIIS 1.0 program, launched in 2018 has till date benefitted 12 city level projects, supporting them to build capacity and implement innovative solutions in the area of Sustainable Mobility, Public Open Spaces, Urban E-Governance and ICT, and Social & Organizational Innovation in Low-Income Settlements. From climate-oriented designs, participation of urban local bodies and citizens, management of environmental and social risks to ensuring social inclusion, the project supports India’s path to urban sustainability. The European Union has provided technical support to the CITIIS 1.0 programme with the contribution of 6 million euros.

This second edition now focuses on circular economy and integrated solid waste management. It builds on the same successful approach, with an increased envelope of 212 million euros, including also a loan from Germany’s Kreditanstalt für Wiederaufbau (KfW) and a 12 million euros grant from the European Union, as part of their Global Gateway flagship strategy. 

Indeed, as the Minister of Housing and urban Affairs reminded, Indian cities face the growing challenge of solid waste management - 62 million tons of municipal solid waste are generated every year in India, and this figure will grow up to 165 million tons per year by 2030. The Government of India is supporting ambitious investments for the proper collection, segregation, recycle and treatment of such amounts of waste. Private sector has also a role to play. 

Minister of State Chrysoula Zacharopoulou underlined that “France is proud to support this programme which will be key in building cleaner, greener, and more sustainable cities in India. The innovative CITIIS approach not only mitigates the health and environmental impact of waste but also creates economic opportunities and positive social impact on citizens. Reconciling economic development with environment protection is at the core of the Indo-French partnership for the planet”.

Seppo Nurmi, Chargé d’Affaires a.i., Delegation of the EU said, “For both EU and India, cities are the engine of growth but need to adapt sustainable models to be able to address climate change and environmental challenges. This project addresses that precisely, with the EU mobilizing investments from Team Europe for a transformational impact. The EU is happy to continue providing technical support to Indian cities in their journey to become self-reliant and future ready.” He added further, “India is a key partner for us under Global Gateway Strategy and CITIIS 2.0 is yet another project that highlights our mutual commitment to build sustainable and trusted infrastructure”.

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