The project would ensure round the clock water supply in four towns.
The Asian Development Bank (ADB) will provide a USD 75 million (around Rs 532 crore) loan for a water supply project in four coastal towns of Karnataka.
The project would ensure round the clock water supply in four towns -- Kundapura, Mangalore Puttur and Udupi.
The fund will also be used to improve sanitation infrastructure for Mangalore town, said an official release.
The programme, approved by ADB Board in 2014, aims to improve urban water resource management in selected river basins in Karnataka through modernisation and expansion of urban water supply and sanitation infrastructure and strengthening institutions to improve water use efficiency, water resource planning, monitoring and service delivery.
The USD 75 million tranche 1 loan is helping strengthen urban water supply and sanitation services in three other towns of the State - Byadagi, Davangere, and Harihar.
An agreement regarding the tranche 2 loan of the programme was signed on Tuesday.
Apart from providing continuous piped water supply and improved sanitation services to nearly one million people, the programme is helping the urban local bodies to become efficient and responsive urban water utility service provider.