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.


  • 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.
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