India, ADB inks loan agreement of $125 million to improve urban services in Tamil Nadu

28 Dec 2022 , 08:53 AM

The Government of India and Asian Development Bank (ADB) signed a $125 million loan to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities in the state of Tamil Nadu.

The financing is the third and the last tranche of the $500 million multi-tranche financing facility (MFF) for the Program approved by ADB in 2018 to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in the state. The tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi.

‘ADB financing will help ensure universal access to basic water and sanitation services and improve resilience against floods in the project target areas which are also the industrial hubs of Tamil Nadu’, said Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance who signed for the Government of India.

Further, Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission who signed for ADB commented, ‘Through this project, ADB continues to support developing and improving urban services in the state by deploying new approaches such as build and operate modality, automatic meters for bulk water users, and real-time monitoring through supervisory control and data acquisition systems.” He further added, “ADB’s urban investments are aligned to support strategic industrial corridor development in Tamil Nadu.”

The financing will support the development of two sewage treatment plants in Coimbatore with 529 kilometers (km) of sewage collection pipelines, install 14 pump and lift stations and build 14 km of sewage pumping mains. In Thoothukudi, climate-resilient stormwater drainage system will be developed.

In Madurai, the project will support the commissioning of 813 km of new water supply distribution pipelines that will connect 163,958 households to 115 newly established district metered area with smart water features to reduce nonrevenue water.

In Coimbatore and Madurai, two all-female self-help groups will be trained on the benefits of household connection to sewage collection system, water conservation, sanitation, and health and hygiene.

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