The Asian Development Bank (ADB) has announced a transformative 5-year plan to invest up to $10 billion in India’s urban infrastructure. The focus of the initiative will be new RRTS corridors, metro extensions and private-sector partnerships, to reinforce the eco-friendly growth, transit development, and better service delivery for more than 100 cities in India.
Introduction:
As part of a strategic move, The Asian Development Bank (ADB) has come forth with a five-year initiative to boost urban transformation in India. The investment for this initiative will be up to $10 billion, including private sector financing, sovereign loans and third-party capital. All this fund will ensure development in vital urban infrastructure projects, consisting of regional rapid transit system (RRTS) corridors, metro rail extensions, and better service in urban regions.
Key Focus – Urban Infrastructure Overhaul:
This initiative has a Urban Challenge Fund (UCF) for India, which is engineered in a way to attract private sector investment and bring innovation in the city. Here ADB plays a vital role as it funds $3 million for technical assistance, making the project bankable and accelerating the capabilities of urban local bodies.
The initiative builds on ADB’s foundation work across 100 Indian cities, covering areas like:
- Growth hub development
- Creative city redevelopment
- Water and sanitation infrastructure
Why It Matters:
India needs efficient, climate-resistant and inclusive infrastructure more than ever as its population is expected to increase by 40% till 2030. ADB has already tackled water supply, solid waste management, sanitation and housing for 110 cities across 22 states. Right now, its urban portfolio includes 27 loans worth $5.15 billion.
In the last 10 years, ADB has funded $4 billion to metro and RRTS projects covering over 300 kilometers in key cities such as-
- Delhi–Meerut RRTS
- Mumbai Metro
- Nagpur Metro
- Chennai Metro
- Bengaluru Metro
These works have majorly decongest several areas, reduce net emissions and enable better access, for all the daily commuters.
Integration with Skills and Clean Energy:
The National Industrial Training Institute Upgradation Program is set up to upgrade the skills of the people working in the sector. ADB has focussed on skill development as it will help the country to enhance manufacturing base and provide high-paying jobs.
President Kanda’s visit also included:
- A meeting with Finance Minister Nirmala Sitharaman, focusing on transit-oriented development, rural prosperity, and rooftop solar initiatives.
- Discussions with Housing & Urban Affairs Minister Manohar Lal on scaling TOD models and attracting private capital.
- A field visit to the Delhi–Meerut RRTS, where he interacted with women beneficiaries of project-linked training programs.
- Engagement with ReNew, a renewable energy firm in Gurugram, to explore energy partnerships.
- A roundtable with CEOs from infrastructure, finance, agriculture, and social sectors, where he emphasized the role of India’s private sector in scaling infrastructure solutions.
A Strong Partnership:
Under ADB’s country partnership strategy for India (2023–2027), it is prepared to provide $5 billion in annual financing, including $1 billion in non-sovereign operations to accelerate private sector investment.
ADB’s historic commitment to India includes-
- $59.5 billion in sovereign lending since 1986
- $9.1 billion in non-sovereign investments
- An active sovereign portfolio of 81 loans worth $16.5 billion as of April 2025
As a prominent multilateral bank in the region, ADB aligns with India’s vision of sustainable, resilient, and inclusive urban growth.
Conclusion:
The ADB’s initiative is a necessary step that will help India to get urban development in needed areas. The public and private capital, technical expertise, and policy support are a set that is made by ADB to bring efficient, inclusive, sustainable infrastructure in India. It supports the government’s goals of infrastructure-led growth and equitable urban transformation.
Source: ADB – Press Release | Image Credit: ADB
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