India signed 250 Million dollar Loan Agreement with ADB

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The Asian Development Bank (ADB) and the Indian Government have signed a 250 million dollar loan to finance the construction of over 6 thousand 2 hundred kilometres all-weather rural roads in 5 states of India. The Joint Secretary in the Department of Economic Affairs in the Government’s Ministry of Finance, Mr Sameer Kumar signed the loan agreement on behalf of Government of India.

The basic objective of the programme is to improve rural connectivity, to facilitate safer and a more effective access to livelihood, to provide socio-economic opportunities for rural communities by improving about 12,000 km rural roads across these five states.

  • The First Tranche Loan is part of the 500 million dollar Second Rural Connectivity Investment Program for India which was approved by the ADB Board in December 2017. 
  • The ADB-funded investment program will provide continued assistance to the PMGSY and support the Government’s long-term goal for rural development.
  • The programme is likely to have a transformative impact in terms of rural economy and would also bring in greater efficiency in terms of access and connectivity for the rural people in the five States.
  • Under the project, about 2,000 technical personnel would be imparted training on road safety and maintenance.
  • It will 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.