New Delhi: The Asian Development Bank (ADB) has approved a $1 billion loan to support the Government of India's urban reform agenda, aimed at strengthening cities as engines of economic growth, innovation and liveability. The Urban Transformation and Investment Program will support the implementation of the Centre's flagship Urban Challenge Fund (UCF) and related reforms to strengthen urban institutions, improve integrated economic and spatial planning, and enhance the financial capacity of urban local bodies, according to the ADB. It will also modernise urban governance by promoting digital systems to improve transparency, efficiency and evidence-based decision-making. Since 2024, it has supported analytical work on urban development, creative city redevelopment, and water supply and sanitation, helping lay the foundation for the Urban Challenge Fund. However, many urban centres continue to face challenges related to institutional capacity, financial resources and access to market-based financing.