ADB Unveils USD 10 Bn Urban Infrastructure Push In India Covering Metro and Rapid Rail

ENA Economy 2025-06-02 15:08:31 New Delhi, Jun 2 (KNN) Asian Development Bank President Masato Kanda has unveiled a comprehensive five-year initiative to mobilise up to USD 10 billion in funding, including third-party capital, aimed at strengthening India's urban infrastructure and services. The announcement follows Kanda's meeting with Prime Minister Narendra Modi, where the ambitious urban development strategy was outlined. The funding initiative will prioritise metro system expansions, development of new Regional Rapid Transit System corridors, and investments in sustainable urban development projects. Kanda emphasised the critical role of urban centres in economic growth, stating that ADB will mobilise capital, accelerate project delivery, and scale solutions to support India's urban economy and contribute to the nation's Viksit Bharat 2047 vision. Central to the initiative is ADB's support for India's Urban Challenge Fund, a flagship programme designed to attract private sector investment in municipal infrastructure. The bank will deploy resources through multiple channels, including sovereign loans, private sector financing, and technical assistance programmes. A dedicated allocation of USD 3 million has been earmarked specifically for developing financially viable projects and enhancing capacity within state and urban local government bodies. ADB's recent analytical work has established the groundwork for implementing the Urban Challenge Fund across 100 cities nationwide. The initiative focuses on developing growth hubs, creative city redevelopment projects, and improvements to water and sanitation infrastructure systems. India's demographic transition presents significant challenges, with urban population projections indicating growth beyond 40 percent by 2030. In response to this rapid urbanisation, ADB plans to expand its existing urban transport portfolio, which has seen USD 4 billion committed over the past decade to metro and RRTS projects spanning eight cities. Notable projects include the Delhi-Meerut RRTS, Mumbai Metro, Chennai Metro, and Bengaluru Metro, all designed to alleviate urban congestion while improving accessibility for marginalised communities, including persons with disabilities. During his visit, Kanda toured the Delhi-Meerut RRTS, India's inaugural system of its type, and engaged with women beneficiaries of project-linked skills training programmes. He also visited Gurugram-based ReNew Power to discuss enhanced partnerships in renewable energy development. Earlier in the week, Kanda met with Union Finance Minister Nirmala Sitharaman, reaffirming ADB's commitment to provide between USD 4 billion and USD 4.5 billion annually in sovereign loans, complemented by USD 1 billion in private sector funding. The bank also outlined plans to intensify support for rural development initiatives, encompassing food system improvements, entrepreneurship development, and employment generation programmes. Kanda characterised the collaboration as centred on urban transformation, private sector development, and skills programmes designed to strengthen India's manufacturing capabilities. He also held discussions with Union Housing and Urban Affairs Minister Manohar Lal Khattar, exploring opportunities to expand metro networks, advance transit-oriented development, and scale rooftop solar project implementations. ADB is actively engaging with chief executives from infrastructure, finance, agriculture, and social sectors to enhance private sector participation in infrastructure development. Under the bank's country partnership strategy for India covering 2023-2027, ADB has committed to providing more than USD 5 billion in annual financing, including approximately USD 1 billion in non-sovereign operations to stimulate additional private investment. Since commencing operations in India in 1986, ADB has committed USD 59.5 billion in sovereign lending and USD 9.1 billion in non-sovereign investments as of April 2025. The current active sovereign portfolio consists of 81 loans totalling USD 16.5 billion as of April 2025. (KNN Bureau) 42292 https://knnindia.co.in/news/newsdetails/economy/adb-unveils-usd-10-bn-urban-infrastructure-push-in-india-covering-metro-and-rapid-rail 2025-06-02 15:08:31 knnindia.co.in ADB Unveils USD 10 Bn Urban Infrastructure Push In India Covering Metro and Rapid Rail