ADB and India ink $200m loan to boost urban services in Rajasthan

The Government of India has teamed up with the Asian Development Bank (ADB), securing a $200 million loan intended for the Rajasthan Secondary Towns Development Sector Project. This substantial funding aims to augment water supply and sanitation systems, improve urban resilience, and promote heritage living in selected towns throughout Rajasthan.

The loan agreement was signed by Vumlunmang Vualnam, Additional Secretary, Department of Economic Affairs, Ministry of Finance for the Government of India, and Takeo Konishi, Country Director of ADB’s India Resident Mission. The signed agreement sets a robust platform for enhancing urban services in Rajasthan.

Post-signing, Vumlunmang Vualnam noted that the additional financing will bolster the Government of Rajasthan’s pledge to bridge the basic infrastructure gaps in its secondary towns, with a special focus on the expansion of water supply, sanitation services, and livability improvement in certain urban local bodies.

ADB funds $200m for urban service expansion in Rajasthan. Photo courtesy of Wasiul Bahar/Wikimedia Commons.

Highlighting the project’s innovative approach, Takeo Konishi added, “The project will incorporate various innovative and climate-resilient solutions for expanding basic urban services and incorporate nature-based solutions to rehabilitate heritage structures besides piloting public-private partnerships in the state’s water and sanitation sector to deepen private sector engagement.”

The ongoing project, approved in September 2020, has already achieved significant milestones, such as the laying of extensive water supply and sewer pipes and connecting tens of thousands of households to water services in Rajasthan’s secondary towns.

The additional financing will be used to enhance water supply systems in several towns, replace old water pipes, install new pipelines, and provide household connections with water meters. It also envisions the establishment of new water treatment plants. An essential part of the initiative includes the reconstruction of water structures with heritage value, rehabilitating heritage-like structures, and enhancing tourism potential.

Moreover, to address water security issues and promote private sector investments, a special purpose vehicle will be created through a public–private partnership. This move will facilitate the delivery of treated wastewater from the sewage treatment plants to industrial facilities, ensuring sustainable use of resources.