India and ADB sign $169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu

Union Government has inked 169 Million Loan agreement with Asian Development Bank (ADB) for Tamil Nadu Urban Flagship Investment Program. It is first tranche of 500 million multi-tranche financing to provide water and sanitation services in Tamil Nadu.

Tamil Nadu Urban Flagship Investment Program

The program will develop climate-resilient sewerage collection and treatment and drainage systems in 10 cities. Under it country’s first solar-powered sewage treatment plant will be installed. Moreover, smart water management systems will be introduced to reduce non-revenue water and strengthen operational efficiency.
It will help to address complex urban challenges through innovative and climate-resilient investment and deeper institutional support. It will boost institutional capacity, public awareness, and urban governance as part of comprehensive approach for developing livable cities. It will benefit around 4 million people from piped water and sewerage connections and improved drainage.
The first tranche of ABD loan will target cities of Chennai, Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore. Moreover, 2 million grant fromAsian Clean Energy Fund, established by Government of Japan will fund solar energy pilot project. Besides, ADB technical assistance grant of 1 million will accompany program to support capacity building.