Aizawl: The Mizoram government has signed a loan agreement with the Asian Development Bank (ADB) to strengthen the implementation of the Mizoram Universal Health Care Scheme (MUHCS).
The agreement, signed on January 23 at the ADB Headquarters in Manila, secures $108 million (approximately Rs. 800 crore) aimed at fortifying the state's healthcare infrastructure, according to an official statement from the State Finance Department.
As the loan is categorized under Externally Aided Projects (EAP), the Central Government will be responsible for the primary repayment.
The ADB loan carries a Secured Overnight Financing Rate (SOFR) of approximately 3.6% per annum.
Under the EAP arrangement, the Centre provides 90% of the loan to Mizoram as a grant. The state government is responsible for repaying only the remaining 10% (Rs 80 crore) to the Centre as a soft loan, with an expected interest rate of 7-8%.
The project was originally proposed in May 2022 as an enhancement of the "Corpus Fund" for the state's healthcare scheme. Despite initial approval by the Ministry of Finance, the proposal faced administrative hurdles.
The current Zoram People's Movement (ZPM) administration revitalized the initiative under a new title: "Supporting Public Health Care System Strengthening to Achieve Universal Health Care for Mizoram."
To clear the deadlock, Chief Minister Lalduhoma and Health Minister Lalrinpuii personally lobbied the Union Finance Minister in Delhi. These efforts were supported by high-ranking Mizo officials in the Central Ministry, including Finance Secretary (Expenditure) Vumlunmang Vualnam, who played a pivotal role in the final negotiations.
Following successful negotiations in October last year and ADB board approval on December 5, the formal signing was conducted via hybrid mode on January 23.
The Finance Department confirmed that the funds are strictly ring-fenced for the MUHCS Corpus Fund.
This massive capital injection is expected to significantly reduce the state government's annual expenditure on healthcare premiums and payouts under MUHCS.
The MUHCS was launched in March last year to provide Rs. 5 lakh in coverage for beneficiaries.
The scheme, which facilitates cashless treatment at government, empanelled private, and church-run hospitals, became fully operational in April 2025.