The Asian Development Bank (ADB) has announced a 5-year plan to mobilise up to $10 billion, including third-party capital, for urban infrastructure and services in India. The plan includes a mix of sovereign loans, private sector financing, and technical assistance.
The funds will be directed towards metro extensions, new Regional Rapid Transit System (RRTS) corridors, and city-level infrastructure. In the past decade, ADB has committed $4 billion to metro and RRTS projects across 8 cities, including Delhi, Mumbai, Chennai, Bengaluru, Nagpur, and Meerut. The Delhi-Meerut RRTS, India’s first, is among the projects visited by ADB President Masato Kanda during his recent trip.
The Urban Challenge Fund (UCF), which aims to attract private capital into city infrastructure, will be a major channel for the planned investments. ADB has already completed groundwork in 100 cities, covering areas like growth hubs, sanitation upgrades, and creative city redevelopment. An additional $3 million in technical assistance will support the design of bankable projects and upgrade states and urban local bodies.
The ADB has engaged in urban development initiatives in more than 110 cities across 22 Indian states. These projects span crucial sectors such as water supply, solid waste management, sanitation, and housing. Currently, ADB's urban portfolio in India comprises 27 active loans with a total value of $5.15 billion.
Kanda met Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and Housing and Urban Affairs Minister Manohar Lal to discuss urban transport, transit-oriented development (TOD), rural development, rooftop solar expansion, and next steps for operationalising the UCF.
In Gurugram, Kanda visited ReNew Power to explore collaboration in renewable energy. A roundtable with executives from infrastructure, finance, and social sectors was also held to discuss expanding private sector participation.
ADB has been operational in India since 1986. As of April 2025, it has committed $59.5 billion in sovereign lending and $9.1 billion in non-sovereign investments. The active sovereign portfolio includes 81 loans worth $16.5 billion.
Read more: India’s GDP Growth Revised to 6.7% by ADB!
The plan covers multiple sectors and aims to support urban infrastructure in India through a combination of loans, partnerships, and ongoing programs under its 2023-2027 strategy.
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Published on: Jun 2, 2025, 2:45 PM IST
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