ADB approved $350 million loan to India for work in urban services

NEW DELHI: Asian Development Bank (ADB) approved a loan of Rs 2644.85 crore for India on Thursday, December 9, to help improve urban services in the nation. The loan of $350 million will support the policies established by the Ministry of Housing and Urban Affairs (MoHUA), Government of India. It aims to accelerate universal coverage of piped water supply and improved sanitation.

The policy-based loan was approved as part of the recently launched national programme, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and Pradhan Mantri Awas Yojana. They aim to provide affordable housing to all, including poor, urban migrant and industrial workers. Sanjay Joshi, Principal Urban Development Specialist for South Asia, ADB, said that the loan supports the central government’s agenda in transforming Indian cities into economically vibrant and sustainable communities. It will continue ADB’s long term engagement with India to improve basic urban services delivery in various states.

ADB, along with the loan, will also provide knowledge and advisory support to the MoHUA in programme implementation, which includes monitoring and evaluation. The agency is set to help low-income states and urban local bodies to implement policy reforms, prepare investments plans, and provide recommendations on urgent issues like climate change, environmental and social safeguards assessment, and gender equality and social inclusion.