<h1>Rural water supply modernization backed by loan supports tariff reform and asset management for sustainable service delivery.</h1> A multilateral loan will expand and modernize rural water supply and sanitation infrastructure, include a pilot fecal sludge management programme, and extend uninterrupted pressurised piped water to additional households. The project conditions require strengthening institutional capacity at state, district and gram panchayat levels, introduction of an asset management system and district plans, training for community organisations and staff, and support for tariff reform and improved operation and maintenance to secure sustainable service delivery.