ADB Releases First USD 108 Million Loan Tranche for Mizoram Healthcare Scheme

AIZAWAL, Nov 7: Mizoram has received Rs 205.49 crore as the first instalment of financial assistance under a USD 108 million project supported by the Asian Development Bank (ADB) to strengthen the state’s Universal Healthcare Scheme (MUHCS), officials said on Saturday.

The ADB released USD 21.6 million to the Union Ministry of Finance on October 29 after Mizoram fulfilled two Disbursement Linked Indicators (DLIs) prescribed under the programme. The Centre subsequently transferred Rs 205.4858 crore to the state government on November 5.

Under the funding arrangement, Rs 184.93 crore, accounting for 90 per cent of the amount, will be provided as a grant, while the remaining Rs 20.54 crore will be extended as a loan. The entire sum will be deposited in the Healthcare Corpus Fund to improve the scheme’s financial stability, according to the state Finance Department.

The Mizoram government intends to fulfil at least three additional DLIs during the current financial year. It is also aiming to secure and utilise approximately Rs 130 crore under the project, officials said.

Progress under the initiative was reviewed at a tripartite meeting in Chandigarh earlier this month, attended by representatives of the state Finance Department, the Department of Economic Affairs and the ADB.

Mizoram entered into the USD 108 million loan agreement with the multilateral development institution on January 23 this year. The project came into effect on April 1 after the ADB team conducted visits and consultations related to its implementation.

The initiative was initially conceptualised in 2022 under the then Mizo National Front government led by Zoramthanga, with the objective of strengthening the financial resources available for the state’s healthcare programme. The proposal was later revived by the current Zoram People’s Movement government under the name “Supporting Public Health Care System Strengthening to Achieve Universal Health Care for Mizoram”.

The ADB board approved the project on December 5 last year after negotiations held in October. Under the externally aided funding arrangement, the Union government will provide 90 per cent of the assistance as a grant, while Mizoram will be responsible for repaying the remaining 10 per cent to the Centre as a soft loan.

Launched in March 2025 and made operational the following month, MUHCS provides eligible residents with cashless medical treatment coverage of up to Rs 5 lakh. The benefits can be accessed at government facilities and empanelled private and church-managed hospitals both within and outside the state.

Government personnel, including provisional and muster-roll employees, are required to contribute between Rs 200 and Rs 1,500 monthly, depending on their salary levels, to access unlimited healthcare coverage.

For pensioners and their spouses, the scheme offers coverage of up to Rs 24 lakh per financial year, subject to surrendering their Fixed Medical Allowance of Rs 1,000 per month, which serves as the basic subscription contribution.

Meanwhile, beneficiaries holding golden cards under the Centre’s Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) are exempted from paying enrolment charges under MUHCS.

The state government expects the additional financial support to strengthen the healthcare fund, reduce its recurring burden on insurance premiums and medical claims, and ensure that the universal healthcare programme remains financially viable over the long term.