India and ADB Sign Over $800 Million in Development Loans Across Three States

The largest of the three agreements, this loan supports a transformational programme to modernise rural power distribution and accelerate agricultural solarization across Maharashtra.

 

In a major boost to India’s infrastructure and human capital development, the Government of India and the Asian Development Bank (ADB) have signed three significant loan agreements valued at over $800 million to support large-scale development projects in Maharashtra, Madhya Pradesh, and Gujarat. The signing took place yesterday under the guidance of the Department of Economic Affairs (DEA), Ministry of Finance, marking another milestone in the country's long-standing partnership with ADB.

Senior officials, including Joint Secretary (ADB & Japan), led the engagement with ADB, ensuring smooth coordination during the finalisation of the financing packages. The agreements were signed by Shri Saurabh Singh, Deputy Secretary, DEA, on behalf of the Government of India, and Ms. Mio Oka, Country Director, ADB India Resident Mission.

In addition to the three major loans, a $1 million Technical Assistance (TA) grant was also finalized to support an upcoming environmental and fisheries initiative in Assam.

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Breakdown of the $800 Million Multi-State Development Package

1. Maharashtra Power Distribution Enhancement Programme ($500 Million)

The largest of the three agreements, this loan supports a transformational programme to modernise rural power distribution and accelerate agricultural solarization across Maharashtra.

Key Outcomes Expected by 2028:

• Reliable daytime solar-powered electricity for at least 9 lakh farmers

• Increased agricultural productivity through assured, clean energy

• Strengthened rural power infrastructure enabling distributed renewable generation

Major Components of the Programme:

• Upgradation of substations and transformers

• Construction of high- and low-tension distribution lines

• Deployment of 500 MWh battery energy storage systems (BESS)

• Modernization of grid infrastructure for seamless renewable energy integration

The initiative aligns with India’s broader push toward clean energy, reduced dependency on conventional power sources, and improved service delivery in rural economies.

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2. Indore Metro Rail Project (¥27,147,200,000 / $190.6 Million)

The second agreement pertains to a Japanese Yen–denominated loan earmarked for the development of the Indore Metro’s underground corridor, one of the city's most ambitious urban mobility initiatives.

What the Loan Will Finance:

• Construction of 8.62 km underground metro line

• Seven state-of-the-art stations

• Seamless multimodal integration with city buses, feeder systems, and commercial hubs

This metro corridor will link congested central areas with the airport, providing a faster, cleaner, and more efficient transport option for millions of residents.

Implementation Details:

• Executed by the Madhya Pradesh Metro Rail Corporation Limited

• Operations expected to begin by January 2030

• Designed to improve access to educational institutions, employment hubs, and local markets

The project reflects ADB's ongoing support for sustainable and modern public transport networks in India.

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3. Gujarat Skills Development Programme ($109.97 Million)

This initiative aims to create a skilled, job-ready workforce capable of contributing to emerging high-growth industries. It will strengthen the state's leadership in advanced skills and vocational training.

Focus Sectors Include:

• Automotive and manufacturing

• Information technology and renewable energy

• Logistics and supply chain

• Healthcare and agri-tech

Programme Benefits:

• Upgradation of 11 Mega ITIs into advanced training hubs

• Establishment of multiple Centres of Excellence

• Enhanced partnerships with private training providers under a hub-and-spoke model

• Curriculum co-designed with industry to ensure relevance to market needs

The programme is spearheaded by the Labour, Skill Development & Employment Department, Gujarat, in collaboration with Kaushalya: The Skill University (KSU).

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Technical Assistance (TA) Grant for Assam ($1 Million)

A dedicated TA grant has been signed for the upcoming Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project in Assam. This strategic initiative aims to:

• Restore and enhance wetland ecosystems

• Strengthen fisheries productivity

• Support biodiversity and livelihoods

• Introduce sustainable practices and scientific management

The SWIFT project showcases the growing focus on ecological restoration and community-oriented resource management in India’s northeastern states.

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ADB–India Partnership Continues to Strengthen

These agreements reflect ADB’s longstanding support for India's development priorities—ranging from clean energy and mobility to human capital and environmental sustainability. The multi-sectoral nature of the loans showcases the importance of collaborative financing to accelerate state-level growth.

With projects spanning renewable energy infrastructure, mass rapid transit, skill development, and environmental management, the loan package is set to generate far-reaching socio-economic impact, contributing directly to India's journey toward inclusive growth and sustainable development.