Govt, ADB sign $169 min loan to provide water, sanitation services in TN
GS 3: Economy | Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
Why in news?
- Union Government has inked $169 Million Loan agreement with Asian Development Bank (ADB) for Tamil Nadu Urban Flagship Investment Program. It is tranche of $500 million multi-tranche financing to provide water and sanitation services in Tamil Nadu.
Significance:
The programme will develop climate-resilient sewerage collection and treatment and drainage systems in 10 cities, and install the country’s first solar-powered sewage treatment plant.
Introduction of smart water management systems will help reduce non-revenue water and strengthen operational efficiency.
Around 4 million people will benefit from piped water and sewerage connections and improved drainage. The program will boost institutional capacity, public awareness, and urban governance as part of a comprehensive approach for developing liveable cities.
The first tranche of ABD loan will target cities of Chennai, Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore. Moreover, $2 million grant fromAsian Clean Energy Fund, established by Government of Japan will fund solar energy pilot project.
Tamil Nadu Urban Flagship Investment Program:
- The program will develop priority water supply, sewerage, and drainage infrastructure in at least 10 cities located within strategic industrial corridors of Tamil Nadu.
- It will support innovative pilots, including India’s first solar-powered sewage treatment plant (STP) to offset greenhouse gas emissions and enhance operational efficiency; strengthen urban governance; and build capacity of state and local institutions to enhance urban service delivery, environmental sustainability, and climate resilience.
