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Govt of India, ADB sign USD 230 million loan agreement to upgrade Chennai's water and sanitation systems

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Chennai (Tamil Nadu) | August 21, 2026 3:28:42 PM IST
The Government of India and the Asian Development Bank (ADB) today, signed a USD 230 million loan agreement to modernise and expand water supply and sanitation infrastructure across Chennai.

The engagement between the Government of India and the ADB for finalising the loan took place under the guidance of Baldeo Purushartha, Joint Secretary (ADB & Japan) at the Department of Economic Affairs, according to the Ministry of Finance.

The formal loan agreement was signed by Saurabh Singh, Deputy Secretary in the Department of Economic Affairs under the Ministry of Finance on behalf of the Government of India, and Mio Oka, Country Director of the India Resident Mission, representing the ADB.

The Chennai Climate-Resilient Water Security and Sewerage Project initiative aims to provide safe and reliable water supply alongside improved sanitation services across the city. The project seeks to build resilience against climate change, support public health and living standards, and establish an efficient, financially viable urban water network.

This development builds upon earlier investments by the ADB in Chennai to widen access to equitable water distribution and waste management services. The initiatives align with key urban development programmes of the Government of India, including the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and the Urban Challenge Fund.

Under the scope of the project, authorities will construct more than 170 kilometres of water supply and sewer pipelines. The infrastructure plan also includes upgrading seven water pumping stations and 38 sewer pumping stations across the metropolitan region.

Additionally, the project aims to strengthen water utility assets and operational management through the implementation of performance-based contracts.

Through these interventions, Chennai will become the first city in India to deploy a comprehensive ring-main system. The closed-loop plumbing design maintains balanced water pressure and distributes water efficiently across designated service zones, enhancing system reliability, distribution equity, and resilience against natural hazards.

The ADB will also support the digital transformation of local water and sanitation services by introducing real-time monitoring, data-driven operational decision-making, and mechanisms for customer responsiveness.

Advanced technologies will be introduced under the project to eliminate hazardous manual inspections of sewer lines, ensure faster and safer blockage identification, and raise safety standards for sanitation workers. The initiative will also prepare distribution networks across at least two zones in Greater Chennai for future capital investments. (ANI)

 
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