India and ADB Sign $125 Million Loan for Assam Urban Upgrade

23 Sep 2025 CW Team

The Government of India and the Asian Development Bank (ADB) on September 22, 2025, signed a $125 million loan agreement to improve urban livability and climate resilience in six district headquarters and Guwahati, Assam.

The agreement was signed by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of India, and Mio Oka, Country Director, India Resident Mission, ADB. The Assam Urban Sector Development Project will benefit approximately 360,000 residents by providing continuous metered water supply and upgraded stormwater management systems, while strengthening urban governance through institutional reforms and capacity building.

Key infrastructure investments include six water treatment plants with a total capacity of 72 million litres per day and 800 km of distribution pipelines in Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari. A real-time monitoring system will aim to keep non-revenue water below 20 per cent. In Guwahati, the project will enhance stormwater management in the Bahini Basin through flood diversion channels, upgraded drainage, and a nature-based retention pond to reduce flood discharge and improve groundwater recharge.

The project will also establish the Assam State Institute for Urban Development in partnership with IIT Guwahati, implement a GIS-based property tax database, digital water billing systems, and a volumetric water tariff structure to improve financial sustainability. Social inclusion and women’s empowerment are core components, including training for women self-help groups, internships for college-age women, and school outreach programs promoting water, sanitation, and hygiene awareness.

News source: PIB

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