In December 2025, the Government of India (GoI) and the Asian Development Bank (ADB) signed three significant loan agreements totaling over USD 800 million. These agreements aim to support essential development projects in Maharashtra, Madhya Pradesh, 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. Alongside these, the ADB 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 enhance rooftop solar energy.
The loans are allocated as follows:
The ADB approved a USD 500 million loan aimed at modernizing power distribution and promoting agricultural solarization in Maharashtra. This initiative seeks to improve rural electricity infrastructure and encourage distributed Renewable Energy (RE) usage.
The program targets to provide daytime solar electricity for irrigation to at least 900,000 agricultural consumers by 2028, thus boosting agricultural productivity while integrating RE into the state's grid. Key components include upgrading substations, installing transformers, constructing high- and low-tension lines, and deploying 500 MWh of battery storage.
For the Indore Metro Rail project, a loan of JPY 27,147,200,000 (USD 190.6 million) has been allocated. This funding will finance an 8.62-kilometer underground metro line featuring seven stations, significantly improving connectivity between congested urban areas and the airport.
The project emphasizes multimodal integration with bus and feeder services, enhancing access to schools, markets, and residential neighborhoods. It is being implemented by the Madhya Pradesh Metro Rail Corporation Limited (MPMRCL), with operations expected to commence by January 2030.
The ADB has allocated USD 110 million for a Skills Development Programme in Gujarat, designed to enhance workforce readiness in high-growth sectors such as logistics, automotive, manufacturing, IT, renewable energy, healthcare, and Agri-tech. This program is spearheaded by Gujarat’s Labor, Skill Development and Employment Department.
The ADB granted a USD 1 million TA to support the Sustainable Wetland and Integrated Fisheries Transformation (SWIFT) Project in Assam. This project aims to rejuvenate wetlands and increase fisheries production, thereby restoring wetland ecosystems.
The ADB approved a USD 650 million policy-based loan to accelerate the adoption of rooftop solar energy across India, aiming to reach 10 million households by 2027 under the Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSG-MBY). This initiative also includes USD 3 million in technical assistance for reforms, capacity building, and promoting gender-inclusive participation.
The program will offer subsidies for residential rooftop solar systems and provide low- and middle-income households with collateral-free loans to facilitate access to renewable energy.
Q1. What is the total amount of loans signed between India and ADB?
Answer: The total amount of loans signed between India and the ADB is over USD 800 million, aimed at supporting development projects in various states.
Q2. What is the focus of the loan for Maharashtra?
Answer: The loan for Maharashtra focuses on power distribution modernization and agricultural solarization, targeting to provide solar electricity for irrigation to numerous agricultural consumers.
Q3. How much loan was approved for the Indore Metro project?
Answer: A loan of approximately USD 190.6 million was approved for the Indore Metro project to enhance connectivity within the city.
Q4. What sectors will the Skills Development Programme in Gujarat target?
Answer: The Skills Development Programme in Gujarat will target high-growth sectors including logistics, automotive, manufacturing, IT, renewable energy, healthcare, and Agri-tech.
Q5. What is the goal of the SWIFT project in Assam?
Answer: The SWIFT project in Assam aims to rejuvenate wetlands and enhance fisheries production, thus restoring vital wetland ecosystems.
Question 1: How much total loan amount was signed between India and ADB in December 2025?
A) USD 500 million
B) USD 800 million
C) USD 1 billion
D) USD 650 million
Correct Answer: B
Question 2: Which state received a loan for the Indore Metro project?
A) Maharashtra
B) Gujarat
C) Madhya Pradesh
D) Assam
Correct Answer: C
Kutos : AI Assistant!
