India, ADB Sign $125 Million Loan Deal to Boost Urban Infrastructure in Assam

New Delhi, September 23: The Indian government has announced a major new milestone. It has signed a USD 125 million loan agreement with the Asian Development Bank (ADB) for investment in Assam’s infrastructure. The loan is aimed at having adequate capital to improve urban livability and strengthen the climate-resilience capacity of six districts of Assam.

The infrastructure initiative is a part of the Assam Urban Sector Development Project. It is expected to benefit around 3.6 lakh residents by providing them with improved water supply, upgraded storm water management, and institutional reforms in urban governance.

Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, signed the loan agreement on behalf of the Government of India, and Mio Oka, Country Director, India Resident Mission, representing ADB.

Key Areas: Water Supply Expansion and Storm Water Management

Under the initiative, construction will be done for six water treatment plants. They will have a combined capacity of 72 million litres per day and 800 km of distribution pipelines across district headquarters in Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari. A system will also be developed to track the efficiency of water supply to ensure that the non-revenue water remains below 20%.

Furthermore, development will be done in the Bahini Basin. It will include flood diversion channels, improved drainage systems, and a nature-based retention pond designed to reduce flood discharge and recharge groundwater.

Beyond infrastructure, the initiative will also aim to strengthen urban governance in the six districts of Assam. It will be done through capacity building and institutional reforms to ensure the effective delivery of essential services.

Loan Agreement to Help Enhance Assam

The loan agreement underscores India’s focus on improving the standard of living across Indian states through sustainable urban development. The new loan will help the six districts in Assam to have an uninterrupted flow of essential services.

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