The money will be spent to improve water supply, solid waste management, and sanitation in the two cities.
The loan is the third tranche of a $200 million financing facility meant to refurbish the capitals of India’s north-eastern states.
The loan will also fund urban reforms, benefiting nearly a million people in the two cities.
Urban infrastructure and services in the Indian northeast are grossly inadequate. The loan will help Agartala and Aizwal improve amenities and services, besides strengthening support institutions.
Previous instalments had gone to the aid of other capital cities in the northeast.
The ADB, based in Manila, aims to reduce poverty in Asia and the Pacific through inclusive and environmentally sustainable growth, and regional integration.