India and ADB signed $200 mn loan deal to enhance urban services in Rajasthan

The Central Government has partnered with the Asian Development Bank (ADB) to sign an agreement for an additional $200 million loan, dedicated to the ongoing Rajasthan Secondary Towns Development Sector Project. This supplementary funding is intended to support the expansion of water supply and sanitation systems, enhance urban resilience, and foster the preservation of heritage in specific towns.

Additional Financing to Improve Urban Infrastructure and Water Services in Rajasthan

The Rajasthan government will receive extra funding to address essential infrastructure gaps in its secondary towns. The focus will be on enhancing water supply and sanitation services, as well as improving the overall livability in selected urban areas.
The project aims to introduce innovative and climate-resilient solutions to expand fundamental urban services. Additionally, it will incorporate nature-based approaches to restore heritage structures. Another significant aspect of the initiative involves testing public-private partnerships in the water and sanitation sector, thereby fostering increased involvement of the private sector.
With the supplementary financing, the water supply systems in at least seven towns will undergo significant improvements. This includes the conversion of groundwater sources to surface water, replacing approximately 700 km of leaking water pipes, and installing 1,400 km of new water supply pipelines. Moreover, around 77,000 households will benefit from water meter connections.
A minimum of eight towns are set to receive significant improvements in their sanitation systems. This will be achieved through the restoration of approximately 580 km of sewers, the construction of seven sewage treatment plants equipped with co-treatment units to handle fecal sludge and septage, and the connection of no less than 54,000 households to the sewage network.

About The Rajasthan Secondary Towns Development Sector Project

The Rajasthan Secondary Towns Development Sector Project, was launched in 2020 with initial capital of $300 million to assist the Government of Rajasthan in enhancing access to better water supply services for approximately 570,000 individuals and improved sanitation services for about 720,000 people across at least 14 secondary towns.