The Asian Development Bank (ADB) has approved a $112 million loan to finance an infrastructure project aimed at providing water supply in four towns in the state of Jharkhand.

While the total project cost of the project — Jharkhand Urban Water Supply Improvement Project, is estimated at $160 million, of which $48 million will be financed by the state government. The project is expected to be completed in 2028.

“The project supports the Jharkhand Vision and Action Plan 2021 to improve the quality of life of its urban residents through better quality urban infrastructure,” said ADB Principal Urban Development Specialist for South Asia Sanjay Joshi.

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“Water supply in Jharkhand is currently inadequate, with residents receiving only an average 3 to 4 hours daily of water supply. The project will ensure continuous and quality water supply, which will also improve the health and hygiene situation in the area, particularly in post-pandemic scenario,” Joshi said in a statement.

The multilateral agency said that the project aims to establish a model for continuous water supply combined with policy reforms and a contractual framework for sustainable operation, which can be replicated by other low-income states in India, including for the recently launched national Jal Jeevan mission for providing water to all urban households.

Prime Minister Narendra Modi’s flagship programme ‘Har Ghar Jal’ scheme aims to provide every household in India with access to tap water.

According to the government Jal Jeevan Mission, as many as 8.4 million households now have assured piped water supply in the 117 poorest districts, an increase from 7 per cent to 31 per cent in 22 months since the scheme was launched in 2019.