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$200 Million ADB Loan to Boost Water and Sanitation in Uttarakhand

The Government of India has formalised a $200 million loan agreement with the Asian Development Bank (ADB) to enhance urban services in Uttarakhand. The signing took place on Wednesday, as announced by the Ministry of Finance.


Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, emphasised that the initiative aligns with India’s urban development goals and supports the state’s efforts to improve urban living standards and sustainability. She stated that the project is designed to develop urban infrastructure that can withstand climate-related challenges, including floods and landslides, thereby safeguarding the health and safety of the local population.

Mio Oka, the Country Director for ADB’s India Resident Mission, highlighted that the project not only focuses on physical infrastructure but also aims to strengthen the capacity of state agencies in areas such as project management, disaster resilience planning, revenue generation, and promoting gender equity.


The planned enhancements will primarily target Haldwani, the economic centre of Uttarakhand, by improving urban mobility, drainage systems, flood management, and overall public services. Specifically, the project includes the construction of 16 kilometres of climate-resilient roads, the introduction of an intelligent traffic management system, and the rollout of compressed natural gas buses alongside a pilot program for electric buses. To bolster flood management efforts, 36 kilometres of stormwater and roadside drainage will be constructed, accompanied by the implementation of an early warning system. Additionally, a green-certified administrative complex and a new bus terminal will be developed to better serve the community.


In four other cities—Champawat, Kichha, Kotdwar, and Vikasnagar—the project aims to achieve comprehensive water service coverage through the installation of 1,024 kilometres of climate-resilient pipelines equipped with smart water meters. It also includes the construction of 26 tubewells, new reservoirs, and a water treatment facility with a capacity of 3.5 million litres per day. In Vikasnagar, sanitation improvements will be facilitated by sewage treatment plants benefiting around 2,000 households.

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Furthermore, the project will incorporate initiatives aimed at empowering women, providing training in skills such as bus driving and managing electric vehicle charging stations. It recognizes women’s vital role in water supply management by offering training and capacity-building opportunities, particularly for those from vulnerable households.

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