The Government of India and the Asian Development Bank (ADB) on Friday signed a $230 million loan agreement to modernise and expand Chennai’s water supply and sanitation infrastructure. The financing will support the Chennai Climate-Resilient Water Security and Sewerage Project, aimed at improving access to reliable water and sanitation services while strengthening the city’s ability to cope with climate-related challenges.
The loan agreement was finalised with the guidance of Shri Baldeo Purushartha, Joint Secretary (ADB & Japan), Department of Economic Affairs (DEA), Ministry of Finance. The documents were signed by Shri Saurabh Singh, Deputy Secretary, DEA, on behalf of the Government of India, and Ms. Mio Oka, Country Director, India Resident Mission, on behalf of ADB.
The project is expected to improve public health and quality of life while making Chennai’s urban water system more efficient and financially sustainable. It will construct more than 170 km of water supply and sewerage pipelines, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen water utility assets and operational management through performance-based contracts.
A key feature of the project will be the introduction of a comprehensive ring-main water supply system, making Chennai the first Indian city to implement such a solution. The closed-loop system is designed to maintain balanced water pressure and distribute water more efficiently across service areas, improving reliability, equitable access and resilience to natural hazards. The initiative aligns with the Government’s flagship urban development programmes, including Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund, while building on ADB’s earlier investments in Chennai.
The project will also accelerate the digital transformation of water and sanitation services through real-time monitoring, data-driven decision-making and improved customer response systems. Advanced technologies will help eliminate hazardous manual sewer inspections, speed up blockage detection and improve worker safety. In addition, distribution networks in at least two Greater Chennai zones will be prepared for future investments, supporting the city’s long-term transition towards a safer, more resilient and sustainable urban water management system.
