India and ADB have signed a $230 million loan, equivalent to about Rs. 2,200 crore, to modernise Chennai’s water supply and sanitation infrastructure.
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New Delhi: The Government of India and the Asian Development Bank (ADB) have signed a $230 million loan agreement, equivalent to approximately Rs. 2,200 crore, to modernise and expand Chennai’s water supply and sanitation infrastructure.
The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable drinking water and better sanitation services while strengthening the city’s resilience to climate change.
The loan documents were signed by Saurabh Singh, Deputy Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Mio Oka, Country Director, ADB India Resident Mission, on behalf of ADB.
The project is aligned with the Centre’s flagship urban development initiatives, including Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and the Urban Challenge Fund.
Under the project, more than 170 km of water supply and sewer pipes will be constructed. Seven water pumping stations and 38 sewer pumping stations will also be upgraded.
The project will strengthen water utility assets and operational management through performance-based contracts, while improving the financial sustainability of Chennai’s urban water system.
A major feature will be the introduction of a comprehensive ring-main water supply system, making Chennai the first Indian city to implement such a solution. The closed-loop network is designed to maintain balanced water pressure and improve the reliability and equitable distribution of water.
ADB will also support the digital transformation of Chennai’s water and sanitation services through real-time monitoring and data-driven decision-making.
Advanced technologies will be introduced to detect sewer blockages faster, improve customer responsiveness and eliminate hazardous manual sewer inspections.
The initiative builds on earlier ADB-supported projects in Chennai and is aimed at creating a safer, more efficient and climate-resilient urban water system.
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