Asian Development Bank (ADB) and the Government of India signed a $250 million
loan to finance the construction of 6,254 kilometres all-weather rural roads in
Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal under the Prime
Minister’s Rural Roads Program (PMGSY).
First Tranche Loan is part of the $500 million Second Rural Connectivity
Investment Program for India approved by the ADB Board in December 2017. The
program is aimed at improving rural connectivity, facilitating safer and more
efficient access to livelihood and socio-economic opportunities for rural
communities through improvements to about 12,000 kilometres Rural Roads across
the 5 States.
Sameer Kumar, Khare, Joint Secretary (Multilateral Institutions), Department of
Economic Affairs in the Government’s Ministry of Finance signed the loan
agreement on behalf of Government of India.
on the occasion, Mr Khare said that the ADB-funded investment program will
provide continued assistance to the PMGSY and support the Government’s
long-term goal for rural development. He said that the program 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.
Kenichi Yokoyama, Country Director of ADB’s India Resident Mission who signed
the agreement for ADB, said that the investment program 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. He said that road maintenance will be ensured through
the provision of a 5-year post-construction maintenance in each civil works
The investment program builds on the $800 million
ADB-financed first Rural Connectivity Investment Program in 2012 that added
about 9,000 kilometers of all-weather rural roads in the same States.
In view of increased rainfall and storm surges in the
project States, the road designs will take into account these climate risks
with measures such as greater elevation of road embankments, slope protection,
and better drainage in flood-prone areas. Women were extensively consulted
during the project design and will gain some key benefits, including improved
access to healthcare, livelihoods, and schooling.