India and ADB Signs USD 800 Million Loan Agreement for Development Projects in Maharashtra, MP and Gujarat

In December 2025, the Government of India (GoI) and the Asian Development Bank (ADB) signed three major loan agreements totaling over USD 800 million to support development projects in Maharashtra, Madhya Pradesh(MP), and Gujarat.

• The agreements were signed by Saurabh Singh, Deputy Secretary, Department of Economic Affairs(DEA), under the Ministry of Finance(MoF); and Mio Oka, Country Director, ADB India Resident Mission.
• The ADB also approved a USD 1 million Technical Assistance (TA) grant for a project in Assam and a USD 650 million policy-based loan to India to boost rooftop solar.

Grant of Maharashtra:

Loan for Modernization: The ADB approved a USD 500 million loan for Power Distribution Enhancement and Agricultural Solarization in Maharashtra to modernize rural electricity infrastructure and promote distributed Renewable Energy(RE).

Aim: The program aims to provide daytime solar electricity for irrigation to at least 900,000 agricultural consumers by 2028, enhancing agricultural productivity while integrating RE into Maharashtra’s state grid.

Key components: It includes upgrading substations, installing transformers, building high- and low-tension lines, and deploying 500 MWh (Mega watt-hour) of battery storage.

Grant for MP:

Indore Metro Rail Expansion: ADB approved a loan of JPY 27,147,200,000 (USD 190.6 million) for the Indore Metro Rail Project to finance an 8.62 kilometer(km) underground metro line with seven stations, enhancing connectivity between congested city areas and the airport.

Integration: The project includes multimodal integration with bus and feeder services, improving access to schools, markets, and residential areas.

Implemented by: The project is implemented by Madhya Pradesh Metro Rail Corporation Limited(MPMRCL), with operations expected to start by January 2030.

Grant for Gujarat:

Skills Development Programme: The ADB approved a USD 110 million loan to fund a Skills Development Programme in Gujarat.

Workforce Readiness: The programme will enhance workforce readiness in high-growth sectors, including logistics, automotive, manufacturing, IT, renewable energy, healthcare, and Agri-tech.

Led by: This program is led by Gujarat’s Labor, Skill Development and Employment Department.

Grant for Assam:

Technical Assistance: The ADB has granted a USD 1 million TA grant to support the Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project in Assam.

Aim: The SWIFT project aims to rejuvenate wetlands and boost fisheries — restoring wetland ecosystems and enhancing fish production in the state.

Grant For Rooftop Solar in India:

Rooftop Solar Loan: The ADB approved a USD650 million policy-based loan to accelerate rooftop solar adoption in India, targeting 10 million households by 2027 under the Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSG-MBY).

Technical Assistance: The loan also includes USD 3 million in technical assistance to support reforms, capacity building, and gender-inclusive participation.

Support: The program provides subsidies for residential rooftop solar systems and supports low- and middle-income households with collateral-free loans.

Significance: It strengthens the power sector, promotes green jobs, and enhances skills of 5,000 personnel, including 1,500 women.

Goal: The initiative aligns with India’s climate targets, aiming for 30 gigawatt (GW) rooftop solar capacity and annual reduction of 28.8 million tons(MT) of carbon dioxide(CO₂), while fostering private sector investment and a robust solar ecosystem.

About Gujarat:
Chief Minister (CM)-Bhupendra Rajinikanth Patel
Governor- Acharya Devarrat
Capital- Gandhinagar
National Park (NP)-Gir NP, Blackbuck NP