India: India Urban and Water Projects Support Facility

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sanitation - Urban water supply

Urban India is the engine of the country's economic transformation. With more than 30% of the country's population, Indian cities generate more than 60% of gross domestic product (GDP). It has been estimated that 77% of GDP growth between 2012 and 2025 in India would be generated in 49 metropolitan clusters. By 2030, urban areas will be home to more than 40% of the population, and generate more than 75% of the country GDP. However, urban infrastructure and service provision do not match with the dramatic growth in population and shift in the rural-urban balance. Water supply, drainage, wastewater collection and treatment, solid waste management, and other urban services are deficient, often with structural dysfunctionalities (e.g., nonrevenue water) and unable to respond to population and economic demands. Indian urban residents suffer from service interruptions and environmental health issues. Critical investments in urban infrastructure and institutions, incorporating international best practices and advanced technologies, are required to make Indian cities more sustainable, competitive, and resilient, and able to fully unleash their potential for economic growth.

Provision of reliable, sustainable and affordable rural drinking water services also remains a challenge in India. Although 93% of rural households in the country have access to water supply from improved sources, only 56% of them have access to safely managed drinking water services. More than 40% of rural households (roughly 390 million people) lack access to water on premises and one in three people rely on a source that is not free from contamination resulting in time loss for collecting water, especially for women and children, and exposure to waterborne diseases. Slippage of rural drinking water service level has been a concern for decades due to limited capacity for O&M and inadequate infrastructure. This is exacerbated by climate change and increasing groundwater abstraction and contamination. Piped water with household connections is emerging as new service delivery model to address these challenges. Considerable investments in high quality infrastructure and institutional development are required to improve provision, quality, and sustainability of rural drinking water services in India.

The South Asia Urban Development and Water (SAUW) division's pipeline projects for India in 2020 2022 includes 16 projects with an overall loan amount of around $3.4 billion and 4 TA grants amounting to $4.5 million to respond to filling part of the country's immediate needs and gaps in critical urban and rural drinking water service delivery. The complex challenges and increasing demand of the sector would require innovative and integrated solutions for infrastructure and institutional development, including advanced technologies, to improve efficiency, durability and quality of service delivery. Examples include smart water management and district-metered area-based water supply systems to manage nonrevenue water and ensure continuous and safe drinking water supply in urban or rural areas. Specialized technical inputs and capacity development are pivotal to support high quality project preparation, successful project implementation, sustainable operation, and value addition by ADB.