ADB Launches $10 Billion Urban Infrastructure Plan for India

The Asian Development Bank (ADB) has announced a $10 billion initiative over the next five years to transform India’s urban landscape, including metro rail expansions, regional rapid transit systems (RRTS), and core infrastructure upgrades in cities. ADB President Masato Kanda made the announcement during his meeting with Prime Minister Narendra Modi on 31 May 2025 in New Delhi. The investment will mobilize both sovereign and private capital, with a focus on creating sustainable, inclusive, and future-ready cities to support India’s “Viksit Bharat @ 2047” vision.

Why in News?

On 1 June 2025, ADB formally announced its $10 billion urban transformation plan for India during President Kanda’s visit. The announcement followed meetings with PM Modi, Finance Minister Nirmala Sitharaman, and Housing Minister Manohar Lal, where ADB reaffirmed its partnership in India’s long-term urban growth and development strategy.

Objectives and Aims of the Initiative

• Support India’s urban transformation through metro, RRTS, water, sanitation, and infrastructure investments.
• Mobilize third-party capital using platforms like the Urban Challenge Fund (UCF).
• Create inclusive and resilient cities by boosting infrastructure access for marginalized populations.
• Strengthen institutional capacity and skills development, particularly in urban governance and youth employment.

Key Components of the $10 Billion Plan

• Sovereign Loans + Private Financing: Blend of public and private funding including nonsovereign operations.
• Urban Challenge Fund (UCF): ADB-backed platform to leverage private capital for urban projects.
• Technical Assistance: $3 million to help states and urban local bodies design bankable projects.
• Metro and RRTS Expansion: Metro coverage extended in Mumbai, Chennai, Nagpur, Bengaluru, and others and Continued work on Delhi–Meerut RRTS, India’s first such system.
• Urban Services: Support for 100 cities in water, sanitation, waste management.
• Skill Development: Through the National Industrial Training Institute Upgradation Program to boost jobs in the manufacturing sector.

Institutional and Government Engagement

Meetings with,

• PM Modi to align on urban goals and Viksit Bharat @ 2047.
• FM Nirmala Sitharaman on TOD (transit-oriented development), solar expansion, and rural-urban synergy.
• Housing Minister Manohar Lal to accelerate capital flows and replicate success in new urban corridors.

Past and Present Urban Engagements by ADB

• Operated in India since 1986.
• Committed $59.5 billion in sovereign lending and $9.1 billion in private (nonsovereign) investments.
• Active portfolio: 81 loans worth $16.5 billion (as of April 2025).
• Over 110 cities in 22 states already supported in past infrastructure and service delivery upgrades.

Significance

• Supports India’s target to become a developed nation by 2047.
• Addresses rapid urbanization, with 40% of Indians expected to live in urban areas by 2030.
• Focuses on green mobility, inclusive access, and private capital mobilization.
• Strengthens public-private partnerships and local capacity in project execution.