ADB proposes $10 billion to transform urban infrastructure in India

Masato Kanda, President of the Asian Development Bank (ADB), has proposed a five-year program to invest up to $10 billion in India’s urban infrastructure through a mix of sovereign loans, private sector money, and third-party resources.

Masato Kanda, President of the Asian Development Bank (ADB), announced a five-year initiative to transform urban infrastructure in India, allocating up to $10 billion, including third-party capital, to urban transformation projects such as metro extensions, new regional rapid transit system (RRTS) corridors, and urban infrastructure and services.

“Cities are engines of growth,” Mr. Kanda said after meeting Prime Minister of India Narendra Modi. “ADB will mobilise capital, accelerate delivery, and scale solutions that keep India’s urban economy moving and people thriving on the road to Viksit Bharat @ 2047.”

The strategy consists of sovereign loans, private sector financing, and third-party capital. The project is led by India’s flagship Urban Challenge Fund (UCF), which ADB is assisting in attracting private investment for urban development. The UCF is being built on the foundation of completed analytical work on growth hubs, innovative city redevelopment, and water and sanitation upgrades in 100 Indian communities. ADB will also provide $3 million in technical assistance to help states and urban local governments create bankable projects and increase their capabilities.

By 2030, more than 40 percent of India’s population is expected to live in towns and cities. ADB has previously engaged with over 110 cities in 22 states on water supply, sanitation, housing, and solid waste management projects, and its active urban portfolio includes 27 loans worth $5.15 billion. In terms of urban transport, ADB has committed $4 billion over the last decade to metro projects and RRTS spanning 300 kilometres in eight cities, including the Delhi-Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro, reducing congestion and emissions while increasing access for vulnerable populations, including those with disabilities.

ADB will also invest in skill development through the National Industrial Training Institute Upgradation Program, which aims to boost the manufacturing sector, catalyse private sector growth, and create quality jobs, particularly for India’s youth.

During his visit, Mr. Kanda also met with Finance Minister Nirmala Sitharaman to discuss extending metro networks, including transit-oriented development (TOD), promoting rural prosperity, increasing rooftop solar capacity, and implementing the UCF. In addition, he met with Housing and Urban Affairs Minister Manohar Lal to discuss next steps for directing private finance into urban projects, repeating ADB-backed urban transit successes on new lines, and developing TOD potential.

For more information, visit: https://www.adb.org/