CONTEXT: INDIA’S URBANISATION CHALLENGE

• India is projected to have 40% of its population in urban areas by 2030.
• Urban areas contribute ~63% to GDP, but face deficits in infrastructure, transport, and basic services.
• There is an urgent need for sustainable, inclusive urban development with private and multilateral funding support.

CONCEPT: ASIAN DEVELOPMENT BANK (ADB) – ROLE & STRUCTURE

• Established: 1966 | HQ: Manila, Philippines
• Vision: A prosperous, inclusive, resilient, and sustainable Asia-Pacific.
• Functions:
  • Provides grants, loans, technical assistance, and equity investments.
  • Supports public-private partnerships and policy dialogues.
  • Focuses on SDG-aligned sectors: transport, energy, health, education, finance, climate.
• Members: 69 (including India) – Japan & USA are largest shareholders.
• Governance:
  • Board of Governors and Board of Directors (elected).
  • President (always Japanese) elected for a 5-year term.
• Funding Sources:
  • Capital raised via international bond markets, member contributions, and loan repayments.

CURRENT: $10 BILLION URBAN INFRASTRUCTURE PUSH (2025–2030)

• ADB President announced a $10 billion commitment for India’s urban transformation over 5 years.
• Objective: Modernize urban infrastructure, expand metro systems, improve water, sanitation, and boost sustainability.

 Key Focus Areas:

• Expansion of metro projects & RRTS corridors.
• Investment in transit-oriented development (TOD).
• Strengthening Urban Challenge Fund (UCF) to attract private capital.
• Development in 100 cities including growth hubs, sanitation, and creative redevelopment.
• Includes $3 million technical support for capacity building & project design.

Achievements & Active Projects:

• ADB has worked in 110+ cities across 22 states.
• Ongoing portfolio: 27 loans worth $5.15 billion.
• Past decade: $4 billion invested in metro/RRTS in 8 cities (Delhi-Meerut, Mumbai, Chennai, etc.).

Future Goals:

• Enhance institutional capacity of urban local bodies.
• Skill development via National Industrial Training Institute Upgradation to aid manufacturing & youth employment.