The Indian central government has signed a USD 400 million policy-based loan deal to support its urban reform strategy with the Asian Development Bank. With this funding, we hope to improve service delivery, encourage effective governance structures, and make it easier to build high-quality urban infrastructure. Joint Secretary of the Department of Economic Affairs Juhi Mukherjee and Country Director of the ADB's India Resident Mission Takeo Konishi formally signed the agreement for Sub-program 2 of the Sustainable Urban Development and Service Delivery Programme.

Sub-programme 1, which was funded with USD 350 million in 2021, set the foundation for improved urban services by creating national policies and guidelines. According to a statement from the finance ministry, Sub-programme 2 goes one step further by assisting state and urban local body (ULB) levels with investment planning and reform initiatives.

Juhi Mukherjee emphasised that the programme is in line with the government's urban sector policy, with a focus on inclusive, resilient, and sustainable infrastructure changes that aim to improve livability and stimulate economic growth in cities.

Sub-programme 2 complements the national flagship initiative, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0, which focuses on universal access to water supply and sanitation, by supporting the changes started by states and ULBs. In addition, the programme aims to maintain sustainable groundwater levels, revitalise water bodies, recycle treated sewage, encourage water conservation, and provide urban water security.