GoI, ADB Seal $800 Million Loan Pacts for Key State Projects

The Government of India and the Asian Development Bank (ADB) have signed loan agreements exceeding $800 million to support a series of major development initiatives across Maharashtra, Madhya Pradesh, Gujarat and Assam. The agreements were formalised under the Department of Economic Affairs, with Deputy Secretary Saurabh Singh representing the Centre and Mio Oka, Country Director of ADB’s India Resident Mission, signing on behalf of the Bank.

A major share of the funding a $500 million loan is earmarked for the Maharashtra Power Distribution Enhancement Programme, which focuses heavily on agricultural solarisation. The initiative aims to modernise rural electricity networks, integrate renewable energy sources and deliver reliable daytime solar power for irrigation. By 2028, the project is expected to provide daytime electricity to more than 900,000 agricultural consumers. Planned works include substation upgrades, installation of transformers, expansion of high- and low-tension lines and deployment of 500 MWh of battery storage capacity to stabilise supply.

For Madhya Pradesh, ADB is extending a ¥27.14 billion Japanese Yen loan (approximately $190.6 million) to advance the Indore Metro Rail Project. The funds will support the development of an 8.62-km underground corridor featuring seven stations and connecting densely populated neighbourhoods to key locations, including the Indore airport. The project is expected to boost multimodal connectivity, improve access to markets and educational hubs and become operational by January 2030.

In Gujarat, a $109.97 million loan has been signed to implement the Skills Development Programme, aimed at strengthening the state’s workforce in high-growth sectors such as manufacturing, IT, logistics, renewable energy, healthcare and agri-tech. The programme, led by the Labour, Skill Development and Employment Department along with Kaushalya: The Skill University, will upgrade 11 mega ITIs, establish advanced centres of excellence and foster stronger partnerships with private training providers through a hub-and-spoke model.

Additionally, the Centre and ADB finalised a $1 million technical assistance grant for Assam’s forthcoming Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project, which seeks to improve wetland ecosystems and promote sustainable fisheries across the state.

This multi-state collaboration is expected to strengthen infrastructure, skill development and environmental sustainability while supporting India’s broader development goals.