The Government of India and the Asian Development Bank signed agreements for five loans totaling over $2.2 billion to support various development projects. The financing will advance initiatives under India’s national flagship programs in skilling and rooftop solar deployment along with projects supporting healthcare, metro development, and ecotourism promotion across three states.
The Government of India’s engagement with ADB for the finalization of the loans was done under the guidance of Shri Baldeo Purushartha, Joint Secretary (ADB & Japan), Department of Economic Affairs. Accordingly, the loan agreements were signed by Shri Saurabh Singh, Deputy Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Officer-in-Charge and Deputy Country Director, India Resident Mission, Ms. Aarti Mehra, on behalf of ADB.
The signed projects comprise supporting Pradhan Mantri Skilling and Employability Transformation through the Upgraded Industrial Training Institutes Programme ($846 million); Accelerating Affordable and Inclusive Rooftop Solar Systems Development Programme (Subprogramme 1 – $650 million); the Assam State Tertiary Health Care Augmentation Project (ASTHA – $398.8 million); the Chennai Metro Rail Investment Project (Tranche 2 – $240 million); and the Integrated Ecotourism and Sustainable Agri-based Livelihood Development in Meghalaya Project ($77 million).
ADB financing for Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes Programme aims to create a future-ready workforce for India’s manufacturing and emerging technology sectors. This will be achieved through modernizing 650 ITIs across 12 states and upgrading five National Skill Training Institutes into centers of excellence for advanced trainer development. This will help deliver demand-driven courses in high-growth sectors such as renewable energy, electric mobility, and advanced manufacturing, improving employability for at least 1.3 million youth.
Rooftop Solar Systems Development
The financing for the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Programme (Subprogramme 1) will support Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY), aiming to accelerate rooftop solar adoption across the country and expand access to clean, affordable energy for 10 million households by 2027. The program will speed up rooftop solar adoption by promoting reforms to develop uniform guidelines and standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, lower-interest loans.
Health Care Augmentation Project
The Assam State Tertiary Health Care Augmentation Project aims to address critical gaps in the state’s health system and shortages in tertiary care by modernizing healthcare and medical education systems. This includes modernizing medical colleges in Guwahati, Dibrugarh, and Silchar to serve as centers of excellence under Srimanta Sankaradeva University of Health Sciences.
Chennai Metro Rail Investment Project
The second tranche loan for the Chennai Metro Rail Investment Project will support the expansion of the metro network along key sections of three metro lines, including 20 km of elevated and underground corridors and 18 new stations. The new stations will be equipped with universal access features and climate-resilient infrastructure to keep passengers and services safe during extreme weather events.
Lastly, the financing for the Integrated Ecotourism and Sustainable Agri-based Livelihood Development in Meghalaya Project will support the state’s vision to become a top ecotourism destination while improving farmers’ incomes. By integrating nature-based tourism with climate-smart farming and forest conservation, the project will help create economic opportunities for over 8,000 local beneficiaries, including women and indigenous communities.
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