IAS Gyan

Daily News Analysis

Sustainable urban services

23rd December, 2021 Society



  • The Government of India and the Asian Development Bank (ADB) signed a $350 million policy-based loan to improve access to urban services

Conditions for the loans

  • The first subprogram will establish essential policies and guidelines for urban reforms at the national level followed by specific reform actions and program proposals at the state and ULB-level under second subprogram.


Support to Government Programs:

  • It will support to India’s recently launched national flagship missions, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 that envisages accelerated universal access of piped water supply and sanitation.

Improved Financial Conditions:

  • The program will also promote performance-based central fiscal transfers to ULBs on the recommendations of the 15th Finance Commission by linking fiscal transfers to improved urban service delivery.
  • This will help boost local financial resource generation in ULBs resulting in improved urban governance.


Role of Asian Development Program:

Knowledge Dissemination:

  • ADB will provide knowledge and advisory support to the Ministry of Housing and Urban Affairs in program implementation, including monitoring and evaluation.

Support local bodies

  • It will also support urban local bodies particularly in select low-income states to implement policy reforms, prepare investment plans.

Provide linkages:

  • It will also provide recommendations on cross-cutting issues like climate change, environmental and social safeguards assessment, and gender equality and social inclusion.


About Asian Development Bank:



Head office

Manilla, Philippines


68 shareholding members including 49 from the Asia and Pacific region


To provide prosperity, inclusivity, resilience, and sustainability to Asia and Pacific along with eradication of poverty

Strategy 2030 for ADB

Strategy 2030 sets the course for the Asian Development Bank (ADB) to respond effectively to the region’s changing needs.

Under Strategy 2030, ADB will sustain its efforts to eradicate extreme poverty and expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific

Indian Status

Founding Member

Recent India and ADB tiesups

·        ADB and India have signed a loan of $206 million to strengthen urban services in 5 Tamil Nadu cities

·        Asian Development Bank (ADB) has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX

·        Asian Development Bank (ADB) had prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC)

·        ADB has offered to provide USD 4 million to member countries to contain coronavirus outbreaks.

·        The Asian Development Bank (ADB) will provide Rs 100 crore loan to hospital chain Medanta for healthcare services and medical equipment to fight the COVID-19 pandemic. The project will support the purchase of personal protective equipment, basic hygiene products, and patient care equipment such as ventilators and beds.