Bhubaneswar: The state government on Tuesday signed an agreement with KfW of Germany for availing Rs 440 crore loan to undertake various urban infrastructure projects.

Besides, KfW has agreed to provide technical assistance of Rs 16 crore, said an official source. The agreement was signed at the state secretariat in the presence of chief minister Naveen Patnaik.

The loan availed from the German agency will be for 10 years commencing from December 2022. The entire amount is to be utilised within a period of six years of the agreement.

The loan and financing agreements for availing the assistance from KfW have already been executed on December 1 between KfW and the economic affairs department of the Government of India.

The loan amount will be utilised on execution of infrastructure projects, such as energy-efficient street lighting, reclamation and development of water bodies, solid waste management, sewerage systems, water supply, stormwater drainage across the urban areas of the state. KfW had earlier extended financial assistance in the form of long-term concessional loan of Rs 400 crore and technical assistance grant of Rs 20 crore. An agreement to this effect was executed on August 2, 2012.