Asian Development Bank commits $10 billion plan for India's urban transformation

Time of India

2 days ago

NEW DELHI: The
Asian Development Bank
(ADB) has committed up to USD 10 billion for India's urban transformation, including metro extension in the next five years, ADB President
Masato Kanda
has said.
"Cities are engines of growth...ADB will mobilize capital, accelerate delivery, and scale solutions that keep India's urban economy moving and people thriving on the road to Viksit Bharat by 2047," Kanda said after meeting Prime Minister
Narendra Modi
here on Saturday.
The transformation plan includes sovereign loans, private sector financing, and third-party capital, ADB said in a statement.
The initiative is anchored by India's flagship
Urban Challenge Fund
(UCF), which ADB is supporting to attract private investment for urban infrastructure, it said.
Analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India are laying the groundwork for the UCF.
ADB is also committing USD 3 million in technical assistance to design bankable projects and strengthen the capacity of states and urban local bodies, it said.
As per estimates, India's towns and cities are projected to house more than 40 per cent of the population by 2030.
ADB has already worked with more than 110 cities across 22 states on water supply, sanitation, housing, and solid-waste management projects, and the active urban portfolio totals 27 loans worth USD 5.15 billion, it said.
On urban transport, over the past decade, it said, ADB has committed USD 4 billion for metro projects and RRTS covering 300 kilometers in eight cities, including the Delhi-Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro, cutting congestion and emissions while widening access for vulnerable populations, including people with disabilities.
ADB will also invest in skills development through the National Industrial Training Institute Upgradation Program to boost the manufacturing sector, catalyze private sector growth, and create quality jobs, especially for India's youth, it said.
Kanda visited the ADB-supported Delhi-Meerut RRTS corridor, India's first RRTS, and spoke with women whose livelihoods have improved through project-linked training, it said.
Under ADB's country partnership strategy for India, 2023-2027, it stands ready to provide more than USD 5 billion in financing each year, including about USD 1 billion in nonsovereign operations to catalyze additional private investment.
ADB began operations in India in 1986. As of April 2025, it has committed USD 59.5 billion in sovereign lending and USD 9.1 billion in non-sovereign investments, it said, adding, the active sovereign portfolio comprises 81 loans totalling USD 16.5 billion as of April 2025.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific.
Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet.
Founded in 1966, ADB is owned by 69 members, 50 from the region.