India, ADB sign loans worth over $2.2 billion for five development projects

The government on Monday signed loan agreements worth over USD 2.2 billion with the Asian Development Bank (ADB) to fund development projects related to skilling, rooftop solar, healthcare, metro rail expansion and ecotourism.

The loans will support projects that are in line with national flagship programmes as well as state-level initiatives in Assam, Tamil Nadu and Meghalaya.

Pradhan Mantri Skilling and Employability Transformation

The largest loan of USD 846 million is for supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes Programme. The project aims to create a future-ready workforce by modernising 650 Industrial Training Institutes (ITIs) across 12 states and upgrading five National Skill Training Institutes into centres of excellence.

The programme is expected to improve employability for at least 1.3 million youth, particularly in high-growth sectors such as renewable energy, electric mobility and advanced manufacturing.

PM Surya Ghar: Muft Bijli Yojana

ADB has also extended USD 650 million under subprogramme 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Programme to support the Pradhan Mantri Surya Ghar: Muft Bijli Yojana.

The programme seeks to accelerate rooftop solar adoption and expand access to clean and affordable energy for 10 million households by 2027, including through collateral-free, low-interest loans for low- and middle-income households.

Assam State Tertiary Health Care Augmentation Project

A loan of USD 398.8 million has been signed for the Assam State Tertiary Health Care Augmentation Project, which aims to address gaps in tertiary healthcare by modernising medical colleges in Guwahati, Dibrugarh and Silchar and strengthening medical education under the Srimanta Sankaradeva University of Health Sciences.

Chennai Metro Rail Investment Project

The government and ADB also signed a USD 240 million loan for the second tranche of the Chennai Metro Rail Investment Project.

The funding will support expansion along key sections of three metro lines, covering about 20 km of elevated and underground corridors and adding 18 new stations equipped with universal access and climate-resilient features.

A USD 77 million loan has been finalised for the Integrated Ecotourism and Sustainable Agri-based Livelihood Development in Meghalaya Project. The initiative aims to promote ecotourism, climate-smart agriculture and forest conservation, creating economic opportunities for over 8,000 local beneficiaries, including women and indigenous communities.

The agreements were signed by Deputy Secretary in the Department of Economic Affairs (DEA) Saurabh Singh on behalf of the Government of India and ADB’s Officer-in-Charge and Deputy Country Director for India, Aarti Mehra, an official statement said.