EIB Global Invests $191 Million to Boost Water and Sanitation in Uttarakhand

In a landmark initiative, EIB Global, the development arm of the European Investment Bank (EIB), has announced a $191 million loan to the Government of India to upgrade and expand water supply and sanitation infrastructure in the northern state of Uttarakhand.

The project, which marks EIB Global's first-ever engagement in India's water sector, represents a major step in the Bank's ongoing partnership with India to promote sustainable urban development, public health, and climate resilience.

The new investment supports the European Union's Global Gateway strategy, which aims to strengthen sustainable infrastructure around the world — particularly in sectors such as clean water, renewable energy, and green transport.

"Improved clean water supply and sanitation systems in Uttarakhand will positively impact the quality of public health," said EIB Vice-President Nicola Beer, announcing the loan agreement. "Modern wastewater treatment, leakage reduction and more efficient water supply will benefit poor households and reduce the burden of disease."

Building a Healthier and More Resilient Future

The EIB Global-financed project aims to transform Uttarakhand's water management systems over the next five years. The state, known for its stunning Himalayan landscapes and growing economic importance, faces mounting pressure from rapid urbanization, expanding tourism, and industrial growth — all of which strain its existing water infrastructure.

Under the project, major improvements will be made to the water supply and sewerage networks in selected municipalities and semi-urban areas. These works are expected to directly benefit approximately 900,000 people, providing them with reliable access to clean water and safe sanitation facilities.

The initiative also prioritizes environmental sustainability through investments in modern wastewater treatment facilities, reduction of non-revenue water losses, and efficient use of energy in pumping and distribution systems.

Smart Water Systems and Technological Innovation

One of the key features of the project is the integration of digital and automated technologies to improve operational efficiency and transparency.

Planned upgrades include:

• Continuous monitoring systems to detect leaks and optimize water pressure.

• Automatic meter reading (AMR) for accurate billing and efficient consumption tracking.

• Real-time remote data collection for faster decision-making and improved resource management.

• Automation of treatment plants to ensure consistent water quality and safety standards.

These measures will not only improve service delivery but also reduce water waste — a crucial step in a region that experiences periodic droughts and high seasonal water demand.

Empowering Communities and Supporting Women

The project is designed with a strong social inclusion component, focusing on underserved communities and vulnerable populations. EIB Global's financing will support the expansion of water and sewerage connections to low-income households in both urban and peri-urban areas.

In many parts of Uttarakhand, women and girls bear the greatest burden of inadequate water and sanitation services, often spending hours each day collecting water and caring for sick family members affected by poor hygiene and contaminated water sources.

By ensuring continuous and safe water supply, the project is expected to reduce these care burdens and free up time for education, employment, and community participation — contributing to broader gender equality and economic empowerment.

Alignment with India's Development and Climate Goals

The new water and sanitation project is fully aligned with India's National Infrastructure Pipeline and flagship programmes such as Jal Jeevan Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

By improving water efficiency and modernizing infrastructure, the initiative will help India meet its climate resilience targets, reduce public health risks, and support sustainable tourism in the ecologically sensitive Himalayan region.

Moreover, the project contributes to multiple United Nations Sustainable Development Goals (SDGs), including:

• SDG 6: Clean Water and Sanitation

• SDG 11: Sustainable Cities and Communities

• SDG 13: Climate Action

• SDG 5: Gender Equality

Deepening the EIB-India Partnership

The EIB has been one of India's most active multilateral financing partners, with a portfolio exceeding €3.6 billion in approved loans since 2016. Its investments have primarily focused on urban mobility, renewable energy, and climate-friendly infrastructure — including major metro systems in Pune, Nagpur, and Bangalore.

The Uttarakhand water project expands the EIB's engagement into the critical area of water security, which is increasingly recognized as a cornerstone of sustainable development and climate adaptation.

"This new initiative highlights how European investment and expertise can help deliver tangible, life-changing benefits for local communities," said Nicola Beer. "It reflects our commitment to working hand in hand with India to create greener, more resilient, and inclusive cities."

The EU Global Gateway: A Strategic Framework for Global Partnerships

The EIB's water investment in Uttarakhand is a flagship example of the EU Global Gateway Investment Agenda, the European Union's framework for mobilizing up to €300 billion globally for sustainable infrastructure between 2021 and 2027.

The Global Gateway strategy emphasizes mutually beneficial partnerships, prioritizing projects that strengthen climate resilience, digital connectivity, clean energy, and human development. In India, it is a cornerstone of the EU-India Connectivity Partnership, launched in 2020 to promote sustainable cooperation in infrastructure and innovation.

Through the Uttarakhand project, EIB Global demonstrates how European financing and local leadership can come together to address shared global challenges — from water scarcity to public health and environmental degradation.

Looking Ahead: A Model for Green Growth

With the successful launch of this initiative, EIB Global and the Government of India aim to establish a blueprint for future water sector investments across the country. The combination of digital monitoring systems, climate-smart infrastructure, and inclusive design principles can serve as a replicable model for other Indian states and developing nations.

As EIB Global continues to expand its operations in South Asia, projects like this highlight how sustainable finance can drive systemic transformation, improving livelihoods while protecting natural ecosystems.

Ultimately, this investment represents far more than pipes and pumps — it is an investment in public health, women's empowerment, and a greener, more resilient future for the people of Uttarakhand.