Asian Development Bank (ADB) president Masato Kanda has announced a five-year initiative to transform urban infrastructure across India, with an estimated investment of $10 billion.
This funding support includes third-party capital into urban transformation like metro extensions, new regional rapid transit system (RRTS) corridors, and urban infrastructure and services.“Cities are engines of growth,” Kanda said after meeting Prime Minister Narendra Modi. The plan includes sovereign loans, private sector financing, and third-party capital.
The initiative is anchored by India’s flagship Urban Challenge Fund (UCF), which ADB is supporting to attract private investment for urban infrastructure.
Completed analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India is laying the groundwork for the UCF. In addition, ADB has committed $3 million in technical assistance to help design bankable projects and enhance the institutional capacity of states and urban local bodies.
During his visit, Kanda also met finance minister Nirmala Sitharaman to discuss expanding metro networks—including transit-oriented development (TOD)—supporting rural prosperity, scaling rooftop solar capacity, and operationalising the UCF.
He also held talks with housing and urban affairs minister Manohar Lal, focusing on mobilising private capital for urban projects, replicating ADB-backed urban transport successes, and creating new TOD opportunities.India’s towns and cities are projected to house more than 40% of the population by 2030. ADB has already worked with more than 110 cities across 22 states on water supply, sanitation, housing, and solid-waste management projects, and the active urban portfolio totals 27 loans worth $5.15 billion, ADB said in a statement.
On urban transport, over the past decade, ADB has committed $4 billion for metro projects and RRTS covering 300 kilometers in eight cities, including the Delhi–Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro, cutting congestion and emissions while widening access for vulnerable populations, including people with disabilities.ADB will also invest in skills development through the National Industrial Training Institute Upgradation Program to boost the manufacturing sector, catalyze private sector growth, and create quality jobs, especially for India’s youth, it said.