Indian Govt and Asian Development Bank Sign $800 Million Loan Agreement for Development Projects

The Government of India has finalised multiple loan agreements with the Asian Development Bank (ADB) to support key infrastructure and development projects across Maharashtra, Madhya Pradesh, Gujarat and Assam.  

The engagement was led by the Joint Secretary (ADB & Japan), Department of Economic Affairs, under whose guidance the loan signing process was undertaken. 

Key Development - Loan Agreements Signed 

Loan agreements were signed for 3 major initiatives: the Maharashtra Power Distribution Enhancement Programme for Agricultural Solarisation ($500 million), the Indore Metro Rail Project (¥27,147,200,000, equivalent to $190.6 million), and the Gujarat Skills Development Programme ($109.97 million).  

These agreements 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 ADB. 

Statements & Project Details 

A Technical Assistance (TA) grant of $1 million was also signed to support implementation of the Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project in Assam, aimed at enhancing wetland ecosystems and fisheries.  

In Maharashtra, the $500 million programme will modernise rural power infrastructure, enable distributed renewable energy generation, and provide reliable daytime solar electricity for irrigation.  

By 2028, the programme targets daytime power supply for at least 900,000 agricultural consumers and includes upgrades to substations, transformers, transmission lines and installation of 500 MWh of battery storage. 

Impact & Outlook Across States 

The Japanese Yen-denominated loan for Indore Metro will finance an 8.62-km underground metro line with 7 stations, linking congested city areas with the airport and integrating with bus and feeder services.  

Operations are expected to begin by January 2030 under the Madhya Pradesh Metro Rail Corporation Limited. In Gujarat, the Skills Development Programme worth $109.97 million aims to enhance job readiness in high-growth sectors such as logistics, manufacturing, IT, renewable energy, healthcare and agri-tech.  

The initiative will upgrade 11 mega ITIs through a hub-and-spoke model anchored by Kaushalya: The Skill University, ensuring industry-aligned training. 

Read More: IMF Changes India's Forex Classification to 'Crawl-Like Arrangement’! 

Conclusion 

These ADB-backed agreements mark a decisive step towards accelerating India’s infrastructure growth, clean energy transition and employment-readiness initiatives. With strong focus on rural solarisation, urban mobility and future-ready skills, the projects are structured to enhance economic resilience and improve quality of life across multiple states.  

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