Ministry of Finance
India and ADB sign $230 million loan to
modernise water supply and sanitation in
Chennai
Chennai Climate-Resilient Water Security and Sewerage
Project will help strengthen city’s resilience to climate
change, improve public health and quality of life, and support
a more efficient and financially sustainable urban water
system
In line with Government of India’s flagship...
Ministry of Finance India and ADB sign $230 million loan to modernise water supply and sanitation in Chennai Chennai Climate-Resilient Water Security and Sewerage Project will help strengthen city’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system In line with Government of India’s flagship urban development interventions under Atal Mission for Rejuvenation and Urban Transformation 2.0 and Urban Challenge Fund, ADB’s latest investment builds on earlier projects in Chennai to expand access to safe and equitable water and waste management services प्रव तथ: 21 AUG 2026 1:59PM by PIB Delhi The Government of India and the Asian Development Bank (ADB) today signed a $230 million loan to modernise and expand Chennai’s water supply and sanitation infrastructure.
The Government of India’s engagement with ADB for the finalisation of the loan was done under the guidance of Shri Baldeo Purushartha, Joint Secretary (ADB & Japan), Department of Economic Affairs
(DEA), Ministry of Finance.
Accordingly, the loan documents were signed by Shri Saurabh Singh, Deputy Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Ms. Mio Oka, Country Director, India Resident Mission on behalf of the ADB.
The Chennai Climate-Resilient Water Security and Sewerage Project will improve access to safe and reliable water supply and better sanitation services across Chennai. It will also help strengthen the city’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system.
ADB’s latest investment builds on earlier projects in the city to expand access to safe and equitable water and waste management services, in line with the Government of India’s flagship urban development interventions, such as the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund.The project will construct over 170 km of water supply pipes and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen water utility assets and operations management through performance-based contracts. With this, Chennai will become the first Indian city to implement a comprehensive ring-main solution, a closed-loop plumbing system designed to maintain balanced water pressure and deliver water efficiently across service areas, improving reliability, equity, and resilience to natural hazards in its urban water supply system.
ADB will help digitally transform water and sanitation services through real-time monitoring, data-driven decision-making, and improved customer responsiveness. The project will introduce advanced technologies to eliminate hazardous manual sewer inspections, make blockage detection faster and safer, enhance worker safety, and prepare distribution networks in at least two Greater Chennai zones for future investments.
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