New Delhi, July 30 (IANS) The Asian Development Bank (ADB) has approved a $1 billion loan to support the Government of India’s urban reform agenda, aimed at strengthening cities as engines of economic growth, innovation and liveability.
The Urban Transformation and Investment Program will support the implementation of the Centre’s flagship Urban Challenge Fund (UCF) and related reforms to strengthen urban institutions, improve integrated economic and spatial planning, and enhance the financial capacity of urban local bodies, according to the ADB.
It further said that the programme will promote resilient urban regeneration, including transit-orientated development and better public-space management, while helping expand access to commercial capital through municipal bonds and other market-based financing mechanisms.
It will also modernise urban governance by promoting digital systems to improve transparency, efficiency and evidence-based decision-making.
ADB has been a long-standing partner of the Ministry of Housing and Urban Affairs (MoHUA).
Since 2024, it has supported analytical work on urban development, creative city redevelopment, and water supply and sanitation, helping lay the foundation for the Urban Challenge Fund.
In addition, the multilateral lender has also extended $3 million in technical assistance to support the ministry in implementing the programme.
“India’s cities will be central to achieving the Viksit Bharat vision of a fully developed nation by 2047,” said ADB Country Director for India Mio Oka
“By combining policy support, technical assistance and financing, the programme will strengthen urban institutions, expand access to market-based financing, and improve infrastructure and service delivery, enabling cities to drive India’s next phase of growth,” Oka added.
ADB noted that cities currently generate nearly 70 per cent of new jobs and contribute around 63 per cent of India’s gross domestic product (GDP), a share projected to rise to 75 per cent by 2030. However, many urban centres continue to face challenges related to institutional capacity, financial resources and access to market-based financing.
–IANS
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