Mizoram gets Rs 205 crore as ADB releases first healthcare loan tranche

Mizoram has received Rs 205.49 crore as the first instalment of the Asian Development Bank's (ADB) $108 million loan for the Mizoram Universal Healthcare Scheme (MUHCS), state officials said on Saturday, November 7, India Today NE reported.

The ADB released $21.6 million to the Union Ministry of Finance on October 29, after Mizoram met two Disbursement Linked Indicators (DLIs), the performance targets that unlock money under the programme. The Finance Ministry passed on Rs 205.4858 crore to the state's account on November 5, and state officials confirmed the receipt two days later.

Mostly a grant

Of the amount received, 10 per cent, or Rs 20.54 crore, will be treated as a loan. The remaining 90 per cent, Rs 184.93 crore, comes to the state as a grant. Externally aided projects in the northeastern states are usually funded on this 90:10 grant-to-loan basis, which means the state has to repay only a small share.

How the loan works

The ADB money is tied to results rather than spending on a fixed list of items. Further tranches of the $108 million will be released as Mizoram meets the remaining disbursement-linked targets set under the programme.

The funds are meant to support the rollout of MUHCS, the state's universal health care scheme, which aims to give residents financial protection when they need hospital treatment.

Why it matters

Health spending is a heavy burden for a small hill state with limited revenue of its own. The first tranche gives Mizoram fresh money to keep the scheme running and to expand it.

Officials have not yet said how the first tranche will be divided between insurance cover, hospital upgrades and other parts of the programme. NEInsider will update this story when the state health department shares details.