State-Level Support for National Flagship Urban Programs (ADB-49107-003)

  • India
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank Sep 26, 2016

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Project Description


The investment program will take an integrated approach to support the three flagship national urban programs in up to four states (Gujarat, Maharashtra, Tamil Nadu, and West Bengal). These states are characterized by high urbanization (42%, 45%, 48%, and 32%, respectively) with urban populations ranging from 29 million to 50 million, high demand for urban services, high urban poverty ratios (9% to 14%), and strong institutions for project implementation. The proposed project has high potential to become a model for the entire country for innovative and efficient infrastructure services delivery in India. Subprojects under the investment program will create improved urban infrastructure consistent with the aims of the flagship programs inclusive of the poor. Subprojects will introduce good practices in infrastructure design, procurement, and construction. Examples include waste-to-energy and reduce-reuse-recycle (3R) practices for solid and liquid waste (biogas, industrial reuse), remote technology for real-time monitoring of water leakage and water quality (multi-parameter sensors), performance-based turnkey contracts, and trenchless technology for linear pipe laying works, where suitable.


Urban centers are driving economic growth in India. More than 30% of India's current population lives in urban areas and contributes 63% of India's gross domestic product (Census 2011). These figures are expected to increase to 40% and 75%, respectively, by 2030. While high urbanization can yield higher productivity and better living standards, Indian cities face persistent development challenges: high urban poverty (35%), environmental and public health hazards, poor hygiene and sanitation behaviors, high water losses (up to 60%) with limited access to 24x7 supply, extensive flooding, unmet energy demands, infrastructure deficits, and weak governance and institutions. Integrated and effective urban development is needed to provide sustainable and affordable basic services. There is an enormous potential to scale up good practices in urban planning and infrastructure development, improve behaviors in hygiene and sanitation, and strengthen institutions to improve living standards for all urban residents.


environmental quality, public health, and quality of life in urban areas improved especially for the poor (Government urban development guidelines).


more reliable and efficient basic urban services delivered.


Individual consultants will be recruited to undertake the PPTA in consultation with government officials and relevant stakeholder groups.


All procurement activities will be carried out using ADB's Procurement and Consulting Guidelines. Advance contracting and retroactive financing option will be used.

Investment Description

MFF Facility Concept: State-Level Support for National Flagship Urban Programs
Ordinary capital resources US$ 500.00 million

Contact Information


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Responsible ADB Officer Ron Slangen
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Urban Development
Nirman Bhawan
New Delhi 110 011