ADB Sanctions $85.4 Mn loan which will fund green infrastructure, solar energy, and EV transport across Tripura’s industrial zones, supporting industrial competitiveness and job creation
In an attempt to boost industrial development in Tripura, the Asian Development Bank (ADB) has approved a $85.4 million loan aimed at upgrading critical industrial infrastructure. The funding will support the Tripura Industrial Infrastructure Development Project, which is designed to enhance the competitiveness of the manufacturing sector, create new employment opportunities, and better integrate the state into regional and global value chains.
The project is a continuation of ADB’s broader commitment to supporting economic corridor and industrial development in India. It builds upon the groundwork laid through a previous project readiness financing (PRF) loan extended to the Tripura state government. That earlier support helped design a roadmap for establishing integrated, inclusive, and climate-resilient industrial infrastructure across nine key industrial estates in the state.
Tripura, which shares borders with Bangladesh, is strategically located to become a gateway for trade and economic connectivity between India’s northeastern region and Southeast Asia. However, the state’s industrial growth has historically been hindered by poor infrastructure and limited access to markets and utilities.
“The lack of quality infrastructure significantly constrains Tripura’s ability to attract private investment into manufacturing and accelerate industrialization,” said Sameer Khatiwada, ADB’s Senior Public Sector Economist. “This project will address these gaps by expanding access to reliable transport, electricity, water, and sanitation services in industrial zones, while also strengthening institutional capacity to foster a more business-friendly environment.”
Infrastructure and Sustainability at the Core
Under the new project, comprehensive infrastructure upgrades will be implemented across the nine targeted industrial estates. These include the construction of climate-resilient internal roads, stormwater drainage systems, culverts, and rainwater harvesting units to address flooding and water scarcity challenges.
Additionally, the project will modernize power distribution by deploying energy-efficient systems, along with the installation of solar power facilities to reduce carbon emissions and ensure energy reliability. Other improvements include streetlights, fire stations, weighbridges, advanced security systems, and enhanced sanitation facilities—critical elements that contribute to creating an investor-friendly industrial ecosystem.
To further promote environmental sustainability, the project incorporates the use of clean energy vehicles, with the planned introduction of compressed natural gas (CNG) buses and electric vehicles (EVs) for intra-zone transport. Charging stations for EVs will also be developed at strategic points within the estates.
Promoting Gender Inclusion and Social Equity
Beyond physical infrastructure, the project emphasizes inclusive development with a strong focus on gender equity. At least 300 square meters of land in each industrial estate will be allocated specifically for women-led enterprises. Dedicated facilities such as childcare centres (daycare) and gender help desks will be established to support female workers and entrepreneurs.
Training programs and job placements will also be facilitated, particularly for women, in areas such as facility management, operations, and maintenance. The goal is to create a more diverse industrial workforce and enable greater participation of women in the state’s industrial development.
Policy Reforms and Business Environment
ADB’s involvement also extends to policy support. Through technical assistance, the bank is helping the Tripura government implement a new industrial policy designed to streamline regulatory processes, attract private investments, and provide incentives for industries to set up operations in the state. This includes simplifying land allotment procedures, enabling faster approvals, and offering targeted support for small and medium enterprises (SMEs).
ADB’s Broader Vision
Founded in 1966, the Asian Development Bank is a multilateral development finance institution owned by 69 member countries, including 49 from Asia and the Pacific. ADB has been instrumental in supporting sustainable and inclusive economic development across the region by leveraging innovative financing solutions and strategic partnerships.
The Tripura Industrial Infrastructure Development Project aligns with ADB’s vision of transforming lives through quality infrastructure, inclusive economic opportunities, and environmental stewardship. By addressing foundational bottlenecks in Tripura’s industrial landscape, the project aims to catalyze long-term economic transformation and position the state as a key node in India’s Act East Policy and regional trade frameworks.
As the project moves forward, it is expected to not only revitalize industrial activity in Tripura but also serve as a model for industrial development in other underserved regions of India.
