Policy

India, ADB sign $125-mn loan pact to improve water supply services in Tamil Nadu

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The Centre has signed a $125 million loan agreement with Asian Development Bank (ADB) to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities – Coimbatore, Madurai, and Thoothukudi – of Tamil Nadu.

The financing is the third and the last tranche of the $500 million multi-tranche financing facility (MFF) for the Tamil Nadu Urban Flagship Investment Programme approved by Manila-based multilateral institution in 2018 to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in the state.

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.

The Centre, through Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance and ADB’s Officer-in-Charge of India Resident Mission Hoe Yun Jeong signed the agreement on December 27.

The 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 Mishra.

“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,” said Jeong in an official statement.

“ADB’s urban investments are aligned to support strategic industrial corridor development in Tamil Nadu.”

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