The agreement was signed by Venu Rajamony, Joint Secretary, Department of Economic Affairs, on behalf of the Central government, and Roberto Zagha, Country Director for India on behalf of the World Bank
Speaking on the occasion, Rajamony said that one of the Central government's major urban development objective is to create economically productive, efficient, equitable, inclusive and responsive ULBs and achieving this objective will not only help sustain high rates of economic growth, but also accelerate poverty reduction and improve services, especially to the urban poor.
He, however, stated that the weak capacity in many ULBs is slowing the much-needed reforms required in these ULBs.
Many ULBs need a comprehensive package of assistance not only in building their capacity for better urban management, but also in formulating comprehensive poverty alleviation strategies.
He hoped that this project would further the government's urban development goals.
The project is part of the Central government's larger vision for urban development as envisaged under programs like the Jawaharlal Nehru National Urban Renewal Mission and the Rajiv Awas Yojna.