ADB approves $230 million loan to modernise water supply and sanitation in Chennai

The Asian Development Bank (ADB) on Friday approved a $230 million loan to modernise and expand Chennai’s water supply and sanitation infrastructure, benefiting 4.5 million residents in the Greater Chennai area.

The project will construct over 170 km of water supply pipes and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen water utility assets and operations management through performance-based contracts, ADB said.

Chennai will become the first Indian city to implement a comprehensive ring-main solution—a closed-loop system designed to maintain balanced water pressure and deliver water efficiently across service areas—improving reliability, equity, and resilience to natural hazards in its urban water supply system, the bank said.

Despite being India’s fourth-largest city and a major industrial hub, Chennai’s water supply infrastructure has not kept pace with growth.

ADB’s latest investment builds on earlier projects in the city to expand access to safe and equitable water and waste management services, in line with the Government of India’s flagship urban development interventions, such as the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund, according to the bank.

“ADB’s financing will improve access to safe and reliable water supply and better sanitation services across Chennai,” said ADB Country Director for India Mio Oka.

“The project will also help strengthen the city’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system.”

ADB will help digitally transform water and sanitation services through real-time monitoring, data-driven decision-making, and improved customer responsiveness.

The project will introduce advanced technologies to eliminate hazardous manual sewer inspections, make blockage detection faster and safer, enhance worker safety, and prepare distribution networks in at least two Greater Chennai zones for future investments, the bank said.

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