New Delhi, Jul 28: The Asian Development Bank (ADB) has approved a USD 1 billion loan to support the Government of India’s urban reform agenda and maintain momentum in urban investments and reforms aimed at transforming cities into engines of economic growth, innovation, and livability.
Besides, the Manila-based multilateral funding institution also approved a USD 850-million loan to support reforms that will speed up the rollout of the Government of India’s flagship rooftop solar programme, boosting the resilience of Indian households through better access to affordable clean energy.
The Urban Transformation and Investment Program supports the implementation of India’s flagship Urban Challenge Fund (UCF) and related reforms to strengthen urban institutions, improve integrated economic and spatial planning, and help urban local bodies strengthen their finances, ADB said in a statement on Tuesday.
It will promote resilient urban regeneration that protects women and girls, including transit-oriented development and improved public-space management, it said.
It will also expand access to commercial capital, including through municipal bonds and other market-based financing, while modernising urban governance through digital systems that improve transparency, efficiency, and evidence-based decision-making, it said.
India’s economic transformation is increasingly driven by urbanisation, it said, adding that cities generate nearly 70 per cent of new jobs and contribute about 63 per cent of the country’s gross domestic product, a share projected to reach 75 per cent by 2030.
However, many cities continue to face constraints related to institutional capacity, financial resources, and access to market-based financing, limiting their ability to manage rapid urban growth and attract investment, it said.
With regard to Affordable Rooftop Solar Adoption loan facility, ADB in a separate statement said the programme will help India expand rooftop solar at scale while making clean energy more affordable and accessible to millions of households.
“It supports a people-centred energy transition by reducing exposure to energy price and supply shocks, strengthening distribution systems, creating green jobs, expanding opportunities for women, and building stronger domestic clean energy value chains,” ADB Country Director for India Mio Oka said.
The programme will also support training and certification of at least 6,000 people — at least one-third of whom are women — and facilitate new model solar villages and innovative distributed solar projects, it said.
It will further strengthen vendor accountability, promote women’s participation in distributed renewable energy, and improve the safe handling and recycling of solar photovoltaic panels and battery waste, it said.
ADB’s support is expected to contribute to India’s target of 30 gigawatts of cumulative rooftop solar capacity, reduce carbon dioxide equivalent emissions by 28.8 million tons, and expand access to affordable solar energy. (PTI)
