ADB approves $139.55 million loan to upgrade urban infrastructure, water supply

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The Asian Development Bank approved a $139.55 million loan to Puducherry to upgrade water, sewer networks, desalination capacity, drainage, and governance

By ANI

Updated - October 30, 2026 at 03:23 PM. | New Delhi

The Asian Development Bank (ADB) has approved a $139.55 million loan to improve urban infrastructure and municipal governance in Puducherry, including the expansion and rehabilitation of water supply and sewerage networks, according to a statement by the development bank.

The funding, under the Puducherry Integrated Urban Livability Improvement Project, aims to support the development of climate-resilient water supply and sanitation infrastructure, modernisation of urban public spaces and measures to strengthen municipal finances and institutional capacity, the release added. 

“The project will enhance Puducherry’s water supply and sanitation services by upgrading 100 kilometres (km) of water supply network, laying 80 km of new pipelines, constructing new overhead service reservoirs, and establishing district metered areas and brackish water reverse osmosis desalination plants,” it said. 

According to ADB, the project will also upgrade urban public spaces by constructing 4.5 km of pedestrian walkways accessible to persons with disabilities and improving drainage systems through concrete lining and stabilisation. These measures aim to enhance pedestrian safety, prevent flooding and accidents, and reduce the impact of extreme weather events. 

“It will also build 270 km of underground sewer network, rehabilitate 80 km of existing sewer network, and set up a new sewage treatment plant with a capacity of 50 million litres per day,” it said. ADB further said in the release, the project will strengthen the municipal government’s institutional capacity and financial sustainability by implementing more efficient revenue collection measures, financial management system upgrades, a digital municipal service management platform, and integrated planning for water security and inclusive sanitation.

ADB Country Director for India Mio Oka said, “The project marks ADB’s first engagement in the Union Territory of Puducherry and is aligned with our support to help India's cities become the engines of economic growth,” adding, “ADB will work with the Government of Puducherry to transform the city into a more livable, tourism-friendly, and resilient growth hub."

Published on October 30, 2026

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