An ordinance has been promulgated by Governor Bhai Mahavir, an official release said here on Tuesday.

The board will be authorised to borrow after obtaining the guarantee from the government, it will mobilise up to Rs 500 crore, which will be utilised for development of infrastructure, including maintenance and construction of roads, irrigation, water supply, solid waste management and sewage disposal.

The board, headed by the state chief secretary, will include the secretaries of finance, water resources, revenue, planning and public works departments and two persons having experience in development banking as its members. Secretary, institutionalised finance, will be the fund manager of the board.

As per the provisions of the ordinance, the board will be authorised to mobilise funds, with the prior permission of the state government , by issuing bonds or debenture from time to time or by agreement borrow from the banks or institutions approved by the state government for the purpose, the release said.