ADB approves USD 125 mn loan to improve urban services in Tamil Nadu

New Delhi: Multilateral funding agency Asian Development Bank (ADB) on Tuesday signed a loan agreement worth USD 125 million (about Rs 1,025 crore) with India to develop climate-resilient sewage collection and treatment, 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 tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi," it said.

'The financing is third & last tranche of USD 500 mn MFF for the programme approved by ADB'

"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," said ADB in a statement.

'Financing will support development of 2 sewage treatment plants in Coimbatore'

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.

ADB cuts India's GDP growth forecast for FY23 to 7% on high inflation, monetary tightening

'Project will help in commissioning of new water supply in Madurai'

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.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, Join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)