World Bank has extended a loan of 200 million US dollars to Kerala to help it improve basic infrastructure facilities in urban and ruralareas. An official release said that the Kerala Local Government and Service Delivery Project will fund improvements in local infrastructure to help the state usher in second-generation reforms towards greater decentralisation at the local level. As many as 978 gram panchayats and 60 municipalities in Kerala would benefit from the Project. The agreements were signed by Joint Secretary in the Department of Economic Affairs (DEA) Venu Rajamony on behalf of the Government, Principal Secretary, Department of Local Self Government, James Varghese, on behalf of the Kerala Government and Roland Lomme on behalf of World Bank.