India and ADB Sign USD 230 Million Loan to Modernise Chennai Water, Sanitation Systems

The Government of India and the Asian Development Bank (ADB) on Friday signed a USD 230 million loan agreement to modernise and expand Chennai’s water supply and sanitation infrastructure, the Ministry of Finance announced on Friday, August 21, 2026. The loan agreement was facilitated by the Department of Economic Affairs (DEA), Ministry of Finance, under the guidance of Joint Secretary (ADB and Japan) Baldeo Purushartha. Deputy Secretary Saurabh Singh signed the documents on behalf of the Government of India, while ADB India Resident Mission Country Director Mio Oka signed on behalf of the multilateral development bank.

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Key Highlights

  • The Government of India and ADB signed a USD 230 million loan agreement for Chennai’s water supply and sanitation infrastructure.
  • The project will construct more than 170 km of water supply and sewer pipes and upgrade pumping infrastructure.
  • Chennai will become the first Indian city to implement a comprehensive ring-main solution aimed at maintaining balanced water pressure and improving supply reliability.
  • Real-time monitoring, data-driven decision-making and advanced technologies will modernise water and sanitation services.
  • The project is designed to strengthen Chennai’s resilience to climate change while improving public health and quality of life.

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Project to Expand Chennai’s Water and Sewer Networks

The Chennai Climate-Resilient Water Security and Sewerage Project will improve access to safe and reliable water supply and sanitation services across the city. According to the Finance Ministry, it is also expected to strengthen Chennai’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system.