Karnataka Water and Sanitation Pooled Fund (KWSPF) plans to raise Rs. 900 crore as part of the Rs. 1,810 crore fund raising programme for the second phase of the CMSMTDP (Chief Minister’s Small and Medium town development program), to be implemented in 211 urban local bodies (ULBs) in the State of Karnataka. The balance Rs. 910 crore will be made available through grants from the Karnataka government As first tranche, Rs 250 crore will be raised in the near future.
Karnataka Water and Sanitation Pooled Fund Trust (KWSPFT) was formed in 2003 for the purpose of financing infrastructure projects on loan basis in Karnataka. KWSPFT lends to projects undertaken by ULBs, statutory bodies and public sector undertakings. It raises resources on a pooled basis and provides new credit enhancement to avail debt at a low cost. The concept of Pooled Finance Mechanism is introduced to raise debt from investors through a Bond Issue. Karnataka Urban Infrastructure Development & Finance Corporation is the fund manager of KWSPFT.