The Asian Development Bank (ADB) has approved a $400-million policy-based loan to India for sub-programme 2 of the Sustainable Urban Development and Service Delivery Programme.
The programme aims to support the government’s reform agenda for improving the quality of urban life through the creation of high-quality infrastructure, assured public services, and efficient governance systems.
While sub-programme 1, approved in 2021, established national-level policies and guidelines to improve urban services, sub-programme 2 is supporting investment planning and reform actions at the state and urban local body (ULB) levels.
“India has recognised the potential for cities to be centres of economic growth and has emphasised the need to make cities liveable through inclusive, resilient, and sustainable infrastructure, which is also in line with ADB Strategy 2030,” said ADB Principal Urban Development Specialist Sanjay Joshi. “The national flagship programme of Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 is targeted for universal access of water supply and sanitation and to ensure urban water security through reducing water losses, recycling treated sewage for non-domestic use, rejuvenation of water bodies, and maintaining sustainable groundwater levels.”
Integrated planning
The programme also envisages integrated reforms to control urban sprawls and foster systemic and planned urbanisation by enhancing the entire ecosystem of legal, regulatory, and institutional reforms along with capacity building of ULBs and community awareness.
Specifically, ULBs will promote modernisation of building bylaws, land pooling, urban agglomeration, and comprehensive urban mobility planning through transit-oriented development to help cities become well-planned centres of economic growth.
Such integrated planning will incorporate climate and disaster resilience, promote nature-based solutions, improve urban environment, and improve cities’ financial sustainability through generation of additional revenues.
Moreover, cities will be incentivised to become creditworthy through reforms for enhancing revenues such as property taxes and user charges, improve efficiencies, and rationalise expenditures.
This will help cities mobilise innovative financing such as commercial borrowings, issuance of municipal bonds, sub-sovereign debts, and public–private partnerships to bridge significant deficit in urban infrastructure investments.
Advisory role
ADB says it will continue to provide knowledge and advisory support to the Ministry of Housing and Urban Affairs towards programme implementation, including monitoring and evaluation.
ADB will focus on lower-income states, which require support in capacity building, institutional strengthening, and policy reforms.
ADB’s stated aim is to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region.