USD 1220 Million Loan is granted from ADB to Government of India for various projects in states including Maharashtra, Tamil Nadu, Assam and Tripura.
ADB and Govt of India sign $350 Million loan to improve Connectivity in Maharashtra
The Asian Development Bank (ADB) and the Government of India signed a $350 million loan to improve the connectivity of key economic areas in the state of Maharashtra.
The signatories to the Connecting Economic Clusters for Inclusive Growth in Maharashtra project were Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.
After signing the loan agreement Shri Mishra stated that the project will help address intra-regional disparities by improving connectivity, facilitating access to services, and accelerating inclusive economic growth of lagging districts in the state.
“This project builds on ADB’s ongoing support to upgrade state highways and major district roads in Maharashtra,” said Mr. Jeong. “It demonstrates approaches and practices that are not yet common practice, including road safety demonstration corridors; climate change adaptation and disaster-risk reduction; and highway works programs responsive to the needs of women, children, the elderly, and people with disability.”
At least 319 kilometers (km) of state highways and 149 km of district roads will be upgraded incorporating climate and disaster-resilient features to strengthen the state’s core road network in the 10 districts of Ahmednagar, Hingoli, Jalna, Kohalpur, Nagur, Nanded, Nashik, Pune, Sangli, and Satara. This will help connect underdeveloped rural communities with off-farm opportunities and markets, improve access to health and social services and improve agricultural value chains by reducing transport costs for small and medium-sized enterprises.
In addition, the project will construct 5 km of major district roads connecting Nanded and neighboring Telangana. The project will promote gender equality and social inclusion in highway programs, schools, health, and social services and set up integrated service centers to provide basic sanitation, education, and other services. Skills training for enterprises led by poor women and disadvantaged groups will be conducted to provide livelihood opportunities. The project will demonstrate the private sector’s effectiveness in undertaking long-term road maintenance for greater life-cycle quality and operational efficiency. It will also develop a good practice handbook for climate change adaptation and disaster risk reduction in road design and maintenance.
ADB Granted $350 Million loan to expand metro rail network in Chennai
The Asian Development Bank (ADB) and the Government of India signed a $350 million loan to build new lines and improve the connectivity of the metro rail system in Chennai with the city’s existing public transport system.
The signatories to the tranche 1 loan for the Chennai Metro Rail Investment Project were Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Nilaya Mitash, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB. The tranche 1 loan is part of the $780 million multi-tranche financing facility (MFF) for the project approved by ADB on 8 December 2022 to develop three new metro lines in Chennai.
After signing the loan agreement Mr. Mishra stated that the project will help expand connectivity of Chennai’s central areas to major destinations in south and west of the city and integrate the metro system with existing bus and feeder services to benefit thousands of daily commuters.
“Beside expanding the metro network in Chennai, ADB's support will facilitate better integration between inclusive urban renewal measures and urban mobility improvements through transit-oriented development (TOD),” said Mr. Mitash. “Such integration will improve access to jobs and socioeconomic services, curb urban sprawling, and reduce dependency on motorized vehicles that will make the city more livable.”
The investment project supports the development of three new metro lines—3, 4, and 5. For Line 3, the project will construct 10.1 kilometers (km) of the elevated section between Sholinganallur to State Industries Promotion Corporation of Tamil Nadu-2, including 9 metro stations and system components. For line 4, the project will help construct 10 km of the underground section between Lighthouse and Meenakshi College including 9 stations. For Line 5 it will finance 31 km of system components, such as electrical, mechanical, power, and telecommunication infrastructure, between Chennai Mofussil Bus Terminus to Okkiyam Thoraipakkam. The stations will incorporate disaster- and climate-resilient features and will be responsive to the needs of the elderly, women, children, differently abled, and transgender people.
Multimodal interchanges and facilities will be established along metro rail corridors to improve commuters’ experience such as drop-off and pick-up areas, sheltered waiting areas, bicycle facilities, and passenger information. An additional $1 million ADB technical assistance (TA) grant will help the Chennai Metro Rail Limited with the planning and management of the metro system’s multimodal integration.
$300 million loan From ADB to Improve Connectivity in Assam
The Asian Development Bank (ADB) and the Government of India signed a $300 million loan to upgrade over 300 kilometres of state highways and major district roads (MDRs) in Assam.
The signatories to the Assam South Asia Subregional Economic Cooperation (SASEC) Corridor Connectivity Improvement Project were Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Nilaya Mitash, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.
After signing the loan agreement, Shri Mishra stated that the project supports the Government of Assam’s flagship Asom Mala road improvement program to enhance the quality and service of priority sections of state highway and MDR networks and fill critical infrastructure gaps.
“Improved connectivity and safe road networks developed through the project will enhance mobility and accessibility of people in the less developed areas of the state to markets and services to spur growth and contribute to its potential as a growth catalyst for the SASEC region,” said Mr Mitash.
The roads to be upgraded under the project, including six road sections in the state’s western, central and southern regions, are connected to SASEC corridors linking India with Bhutan and Bangladesh, and are expected to boost cross-border trade and transport. The project will complement the multimodal logistics park being built in Jogighopa and a another proposed in Silchar to serve road, rail, inland waterway, and air transport facilities.
The project will expand state highways and major district roads from single lane to two lanes and introduce new climate- and disaster-resilient structures. It will establish pedestrian and public transport facilities, elevate highways in flood-prone areas, and include landslide prevention structures in hilly and mountainous areas.
Community schools, water, health, and sanitation facilities, and heritage and tourism sites will be restored in affected indigenous peoples’ villages. To protect wildlife and habitats in project areas, viaduct structures will be constructed to avoid human–elephant conflict in the elephant habitats. In addition, community road users, drivers, motorcycle riders, schoolteachers, and students will be informed and trained on road safety. The project will strengthen the capacity of the Assam Public Works (Roads) Department in managing road assets, integrating climate and disaster resilience in road projects, and ensuring safeguards—such as environment, resettlement, and indigenous peoples concerns—are considered.
ADB signed $220 Million loan to strengthen power sector in Tripura
The Asian Development Bank (ADB) and the Government of India signed a $220 million loan to improve energy security, quality of supply, efficiency, and resilience of power sector in Tripura.
The signatories to the Tripura Power Distribution Strengthening and Generation Efficiency Improvement Project were Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India, and Mr Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission, who signed for ADB.
After signing the loan agreement Shri Mishra stated that the project will support the Government of Tripura’s efforts to strengthen its power sector through replacement of inefficient power plants, strengthen the distribution network and installation of smart meters that will help increase generation capacity, reduce distribution losses and to meet the increasing electricity demand to boost the state economy.
“The Project will fund the replacement of Rokhia power plant with a highly efficient combined cycle gas turbine that will reduce greenhouse gas emissions through fuel saving, modernize the state’s power distribution network and build institutional capacity and overall business process of the project executing agencies,” said Mr. Jeong.
It will also promote gender equality through pilot testing of gender and socially inclusive workplace practices. The project will support at least 15 selected women self-help groups (SHGs) under Tripura rural livelihood mission targeting socio-economic empowerment of the rural poor and women of the state that will include farming and non-farming sector.
A reliable electricity supply will lead to social and economic benefits and improved conditions for schools, hospitals, and other social services.
The project components will be designed to withstand heavy rainfall, lightning, and storms with high wind speeds to help the region remain resilient to potential climate change risks. Distribution underground cabling will be installed by the horizontal directional drilling method or tunneling method to minimize road openings and reduce socio-environmental impacts during project implementation.