ADB approves $125 million loan to improve urban services in Tamil Nadu

Multilateral funding agency Asian Development Bank (ADB) on Tuesday signed a USD 125 million (about Rs 1,025 crore ) loan agreement with India to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities of Tamil Nadu. The tranche 3 loan for Tamil Nadu Urban Flagship Investment Programme were signed by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs and Hoe Yun Jeong, Officer-in-Charge of ADB's India Resident Mission.

The financing is the third and the last tranche of the USD 500 million multi-tranche financing facility (MFF) for the Programme approved by ADB in 2018 to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in the state, ADB said in a statement.

The tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi, it said.


The financing will support the development of two sewage treatment plants in Coimbatore with 529 kilometres (km) of sewage collection pipelines, install 14 pump and lift stations and build 14 km of sewage pumping mains.

In Thoothukudi, a climate-resilient stormwater drainage system will be developed, it said.

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 non-revenue water, it said.

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