On September 22, 2025, the Government of India and the Asian Development Bank (ADB) signed a $125 million loan agreement to enhance urban livability and bolster climate resilience in six district headquarters and Guwahati, in the State of Assam through the Assam Urban Sector Development Project. The loan agreement was signed by Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance for the Government of India, and Ms. Mio Oka, Country Director, India Resident Mission, for ADB.
The project will benefit 360,000 residents of Assam by delivering continuous metered water supply and upgrading stormwater management systems. Key infrastructure investments include the construction of six water treatment plants with a combined capacity of 72 million litres per day and 800 km distribution pipelines in the district headquarters of Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari. In Guwahati, the project will enhance stormwater management in the Bahini Basin with flood diversion channels, upgraded drainage systems, and a nature-based retention pond. The project will also deploy a real-time monitoring system, aiming to maintain non-revenue water below 20%.
The project also includes the establishment of the Assam State Institute for Urban Development in collaboration with the Indian Institute of Technology Guwahati. Additionally, it will roll out a GIS-based property tax database, digital water billing systems, and a volumetric water tariff structure across project towns to improve financial sustainability and service delivery. With a strong emphasis on supporting women and girls, women self-help groups in water operations will be given training, internships for college-age women will be established, and school outreach programs to promote awareness of water, sanitation, and hygiene will be conducted under the project.
Key Entities Referenced
Asian Development Bank (ADB): International development bank providing the $125 million loan.
Assam: Indian state where the project is being implemented, benefitting 360,000 residents.
Assam Urban Sector Development Project: The project involving a $125 million loan to improve urban services, water supply, and stormwater management.
Ministry of Finance: Government ministry involved in signing the loan agreement.
Guwahati: One of the key locations benefitting from the project, particularly in stormwater management.
Ministry of Finance
Government of India and ADB sign $125 million loan
to upgrade urban services in Assam
Project will benefit 360,000 residents of Assam by
delivering continuous metered water supply and
upgrading stormwater management systems
Project will enhance urban livability and bolster
climate resilience in six district headquarters and
Guwahati, in the State of Assam
With a strong emphasis on supporting women and
girls, women self-help groups in water operations will
be given training, internships for college-age women
will be established, and school outreach programmes
to promote awareness of water, sanitation, and
hygiene will be conducted under the project
Posted On: 22 SEP 2025 7:20PM by PIB Delhi
The Government of India and the Asian Development Bank (ADB) today signed a $125 million loan
agreement with to enhance urban livability and bolster climate resilience in six district headquarters and
Guwahati, in the State of Assam.
The signatories to the loan agreement for the Assam Urban Sector Development Project were Ms.
Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance for the
Government of India, and Ms. Mio Oka, Country Director, India Resident Mission, for ADB.
The project will benefit 360,000 residents of Assam by delivering continuous metered water supply
and upgrading stormwater management systems. It also seeks to strengthen urban governance
through institutional reforms and capacity building.
Key infrastructure investments include the construction ofsix water treatment plants with a
combined capacity of 72 million litres per day and 800 km distribution pipelines in the district
headquarters of Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari. The project will
also deploy a real-time monitoring system, aiming to maintain nonrevenue water below 20%.In Guwahati, the project will enhance stormwater management in the Bahini Basin with flood
diversion channels, upgraded drainage systems, and a nature-based retention pond to reduce flood
discharge and improve groundwater recharge.
The project also includes the establishment of the Assam State Institute for Urban Development in
collaboration with the Indian Institute of Technology Guwahati. Additionally, it will roll out a GIS-
based property tax database, digital water billing systems, and a volumetric water tariff structure
across project towns to improve financial sustainability and service delivery.
A strong emphasis on supporting women and girls and social inclusion is embedded in the project.
Activities include training women self-help groups in water operations, establishing internships for
college-age women, and conducting school outreach programs to promote awareness of water,
sanitation, and hygiene.
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NB/KMN
(Release ID: 2169778)