India and Asian Development Bank (ADB) signed a USD 110 million loan agreement to upgrade the 2800 kilometers all-weather rural roads in Madhya Pradesh under the Prime Minister’s Rural Roads Program (PMGSY).This agreement under the Second Rural Connectivity lnvestment Programme was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs in the Union Ministry of Finance; and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.
• This loan agreement is the tranche 2 of the USD 500 million Second Rural Connectivity investment Programme for India that was approved by the ADB Board in December 2017.
• The tranche 2 of the project will provide continued assistance to the PMGSY by upgrading rural roads in Madhya Pradesh that will support the Government’s long term goal to achieve inclusive economic growth in rural India.
• The loan will improve mobility for self-employment and livelihood opportunities in rural areas by improving access to district centers.
• It will continue to support the Government’s drive for innovative approaches to reduce costs, conserve non-renewable natural resources, and promote the use of waste materials in rural road construction.
• Considering the increased rainfall and storm surges in Madhya Pradesh, the road designs take into account the climate risks with measures such as greater elevation of road embankments and slope protection.
• Women were extensively consulted during the project design and will gain some key benefits, including improved access to healthcare, livelihoods and schooling.