The Government of India and the Asian Development Bank (ADB) have entered into a $230 million loan agreement to boost Chennai’s water supply and sanitation infrastructure. The project is designed to improve access to reliable water services, strengthen sewerage systems and make the city’s urban water network more resilient to climate-related challenges.

The agreement was finalised with the Department of Economic Affairs overseeing India’s engagement with the multilateral lender. Baldeo Purushartha, Joint Secretary (ADB & Japan) at the Department of Economic Affairs, guided the process, according to the Ministry of Finance.

Saurabh Singh, Deputy Secretary in the Department of Economic Affairs, signed the agreement on behalf of the Government of India, while Mio Oka, Country Director of ADB’s India Resident Mission, represented the development bank.

The funding will support the Chennai Climate-Resilient Water Security and Sewerage Project, which aims to strengthen the city’s ability to provide dependable water and sanitation services.

As part of the project, more than 170 kilometres of new water supply and sewer pipelines will be constructed. Authorities will also upgrade seven water pumping stations and 38 sewer pumping stations across the metropolitan region.

The initiative is expected to improve the overall functioning of Chennai’s water utility infrastructure while also enhancing operational efficiency. Performance-based contracts will be introduced to strengthen asset management and improve the delivery of services.

Ring-Main System To Boost Water Distribution

A key feature of the project will be the introduction of a comprehensive ring-main water distribution system, making Chennai the first Indian city to adopt such a citywide network.

The closed-loop system is designed to maintain more consistent water pressure while allowing supplies to be distributed more efficiently across different service areas. Such a network can also improve reliability and help the water system withstand disruptions caused by natural hazards.

The project is therefore expected to address not only current infrastructure gaps but also improve Chennai’s preparedness for climate-related risks.

Technology To Transform Water And Sewerage Services

The ADB-backed programme will also focus on bringing greater digitalisation to Chennai’s water and sanitation operations.

Real-time monitoring systems and data-led decision-making tools will be introduced to help authorities track network performance and respond more effectively to operational issues. The project also includes measures aimed at improving customer responsiveness.

Technology will play an important role in improving worker safety as well. Advanced systems are expected to reduce the need for hazardous manual inspections of sewer lines, allowing blockages and other problems to be detected more quickly and safely.

Project Builds On Earlier ADB Support

The latest financing package follows previous ADB investments aimed at expanding equitable access to water distribution and waste management services in Chennai.

The project is also aligned with major urban infrastructure initiatives of the Indian government, including the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and the Urban Challenge Fund.

Beyond immediate infrastructure upgrades, the programme will prepare distribution networks in at least two zones of Greater Chennai for future capital investments. This is expected to help create a stronger foundation for long-term expansion of the city’s water infrastructure.

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