India signs $125 million loan deal with ADB to improve urban services in Tamil Nadu

Published on December 29, 2022
Current Context: A loan agreement worth USD 125 million (roughly Rs 1,025 crore) was signed by the Asian Development Bank (ADB) and the Government of India (GoI) to develop climate-resilient sewage collection and treatment, drainage, and water supply systems in three cities in Tamil Nadu: Coimbatore, Madurai, and Thoothukudi (TN).
India signs $125 million loan deal with ADB to improve urban services in Tamil Nadu
  • Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance, and Hoe Yun Jeong, Officer-in-Charge of ADB's India Resident Mission, signed the loan agreement for the TN Urban Flagship Investment Program.
  • This is the third and final tranche of the USD 500 million multi-tranche financing facility (MFF) for the Flagship Program, which was approved by ADB in 2018 and is for the construction of priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across ten cities in TN.
  • Through this project, ADB will help Tamil Nadu enhance and improve its urban services by creating new strategies for construction and operation, automatic meters for large-scale water users, and real-time monitoring using supervisory control and data acquisition systems.
  • Two sewage treatment facilities will be built in Coimbatore, together with 529 km of sewage collection pipes, 14 pumps, 14 lifting stations, and roughly 14 km of sewage pumping mains.
  • In Thoothukudi, a stormwater drainage system that is climate resilient will be created.
  • In Madurai, the project will assist in the commissioning of 813 km of new water supply and distribution pipelines, connecting nearly 163,958 homes to 115 newly constructed district-metered areas with smart water features to lower non-revenue water usage.
  • Asian Development Bank:
    • President – Masatsugu Asakawa
    • Establishment – 1966
    • Headquarters – Mandaluyong City, Metro Manila, Philippines
    • Members – 68 members


Q.1 An USD­­­­­­_____million loan between the Asian Development Bank and GoI was recently approved to upgrade urban services in 3 cities of Tamil Nadu. What was the amount?
a. 125 Million
b. 100 Million
c. 500 Million
d. 200 Million

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