ADB okays $1.8 billion loans for urban reforms, rooftop solar push

New Delhi: The Asian Development Bank (ADB) has approved loans worth $1.85 billion to support urban reforms and accelerate rooftop solar deployment in India, backing two flagship government programmes. The multilateral lender approved a $1 billion loan for the government’s Urban Transformation and Investment Program and an $850 million loan for the second phase of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program.

The urban programme will support implementation of the Urban Challenge Fund by strengthening urban institutions, improving integrated planning and helping urban local bodies enhance their financial capacity, the ADB said. The lender is also providing $3 million in technical assistance to help the ministry of housing and urban affairs implement the Urban Challenge Fund.

The $850 million loan will support the Pradhan Mantri Surya Ghar Muft Bijli Yojana, which aims to provide rooftop solar systems to 10 million households and add 30 GW of residential rooftop solar capacity by FY27. The programme will help finance at least 3.5 million rooftop solar installations, strengthen power distribution networks, improve digital monitoring systems and encourage private sector participation, the ADB said.