Xiangtan is in the midst of rapid urbanisation and will use part of the $200 million ADB loans to transform its public transport network.
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The rapid transit system is said to be a first of its kind in India and will include multimodal transport hubs to ensure smooth transition between modes.
A report from the Asian Development Bank (ADB) has suggested that now is the time to deploy new and greener technologies to ensure public transport becomes central to the "new normal".
The Asian Development Bank's (ADB) Independent Evaluation Department (IED) has released a report revealing its support for connectivity in Asia and the Pacific's transport sector, but has claimed it needs to scale up support for sustainable mobility.
The loan will help to implement a new intelligent transport system which is hoped reduce congestion across the Guizhou Province and improve the environmental aspects of the region.
With a view of reducing personal car use, and improving air quality in the city, the Asian Development Bank is investing over $230 million in quality public transport for Karachi.