A revolving fund of `3,250 crore has been created to provide loans to all urban local bodies (ULBs), including city corporations at six per cent interest to take up development works, urban development minister Vinaykumar Sorake said.

He said a number of ULBs are not in a position to pool resources and provide basic amenities to their residents owing to financial difficulties.

The department has created this fund and loan would be provided to the ULBs which need money for development, he said.

The loan should be utilised for providing basic facilities,  such as drinking water, solid waste management, road connectivity, land acquisition and underground drainage, he told reporters here.

“I have asked the officials to send proposals seeking loans. They would be placed before the Cabinet for approval. The department has got money given by the Centre and international funding agencies and it will be given to fund-crunched ULBs,” Sorake stated.

Proposal to Upgrade ULBs

He said there is a demand to create two more city corporations in the state: Ramanagaram, Channapatna and Bidadi as one and Mandya and Maddur as another. At present, there are 10 city corporations in the State.