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The Government of India and the Asian Development Bank finalised loan agreements earlier this week exceeding USD 800 million to support major infrastructure and skilling projects in Maharashtra, Madhya Pradesh and Gujarat. The funding covers Maharashtra's agricultural solarisation programme, the Indore Metro project in Madhya Pradesh, and Gujarat's skill development initiative. A separate USD 1 million technical assistance grant will support Assam's forthcoming SWIFT Project, aimed at strengthening wetland management and fisheries. These approvals build on ADB's ongoing involvement in India's energy transition, urban mobility upgrades and workforce development programmes.
The Government of India and the Asian Development Bank (ADB) concluded loan agreements worth more than USD 800 million earlier this week to support development initiatives in Maharashtra, Madhya Pradesh and Gujarat. According to a finance ministry communication issued during the past week, the agreements include funding for Maharashtra's Power Distribution Enhancement Programme for Agricultural Solarisation, the Indore Metro Rail Project, and the Gujarat Skills Development Programme. Advertisement
Maharashtra's scheme has secured USD 500 million to upgrade rural power infrastructure, expand distributed renewable energy generation and enhance agricultural productivity by ensuring reliable daytime solar power for irrigation. Officials noted that the programme has been structured to benefit at least 900,000 agricultural consumers over the next few years. It has also been designed to integrate modernised distribution systems capable of absorbing higher renewable loads, involving substation upgrades, new transformer installations, high- and low-tension line development and the deployment of 500 MWh of battery energy storage. Maharashtra has previously undertaken similar feeder-separation and distribution-strengthening efforts, but the new programme is intended to accelerate rural renewable integration at scale.
The loan for the Indore Metro Rail Project in Madhya Pradesh-valued at 27,147,200,000 yen, which is equivalent to USD 190.6 million-forms part of the broader Phase-I network development. The metro system has been under construction for several years and is intended to ease urban congestion, reduce vehicular emissions and improve mobility for Indore's expanding population. ADB has supported multiple metro systems across Indian cities, and this tranche reinforces its long-term involvement in urban transport modernisation.
In Gujarat, the USD 109.97 million loan for the Skills Development Programme aims to strengthen the state's workforce readiness in sectors identified as high-growth. These include logistics, automotive manufacturing, information technology, renewable energy, healthcare and agri-tech. The initiative is being led by the Labour, Skill Development and Employment Department and is intended to align training standards with industry requirements. Gujarat has previously undertaken several skill-building missions, but the new programme focuses on advanced, industry-integrated learning pathways.
Alongside these loans, ADB and the Government of India also signed a Technical Assistance grant worth USD 1 million to support preparations for the Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project in Assam. The proposed initiative is aimed at improving wetland ecosystem management, boosting fisheries productivity and strengthening livelihoods linked to aquatic resources. Assam's wetlands have seen increasing ecological stress in recent decades, and the project is designed to build a modern framework for conservation and economic revival.
The agreements signed during the past week reaffirm ADB's central role in India's infrastructure and human-capital development agenda. With Maharashtra seeking to scale daytime solar irrigation, Madhya Pradesh advancing its metro connectivity, Gujarat enhancing workforce competitiveness and Assam preparing for ecological restoration across its wetlands, the funding is poised to support wide-ranging sectoral upgrades. While each project targets a distinct challenge, together they reflect a continued shift towards sustainable energy systems, improved urban mobility and stronger labour-market alignment, supported through long-term institutional collaboration between India and ADB.
Source - PTI
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