ADB approves USD 230 million loan to modernize Chennai's water infrastructure

New Delhi [India], July 3 (ANI): The Asian Development Bank (ADB) approved a USD 230 million loan to modernize and expand water supply and sanitation infrastructure in Chennai, India. The project aims to improve urban services for 4.5 million residents living in the Greater Chennai area.
According to an ADB press release, the investment addresses critical infrastructure gaps in India's fourth-largest city and major industrial hub, where existing water systems lagged behind rapid urban growth.
The initiative aligns with the Government of India's flagship urban development interventions, including the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund. It builds directly upon earlier development projects executed within the city to expand access to safe and equitable water and waste management services.
"ADB's financing will improve access to safe and reliable water supply and better sanitation services across Chennai," said ADB Country Director for India Mio Oka.
"The project will also help strengthen the city's resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system," Oka added.
Engineering works under the loan include the construction of more than 170 kilometers of water supply and sewer pipelines. The project also covers upgrades to seven water pumping stations and 38 sewer pumping stations alongside the introduction of performance-based contracts to strengthen utility assets and operational management.
Through this funding, Chennai will become the first Indian city to implement a comprehensive ring-main solution. This closed-loop system maintains balanced water pressure to distribute water efficiently across service areas, which upgrades reliability, equity, and resilience to natural hazards in the urban grid.
The release noted that ADB intends to help digitally transform these local services using real-time monitoring, data-driven decision-making, and improved customer responsiveness.
Furthermore, the project introduces advanced technologies to eliminate hazardous manual sewer inspections, which makes blockage detection faster and safer while enhancing overall worker safety. It also prepares distribution networks in at least two Greater Chennai zones for future development investments. (ANI)