The Asian Development Bank (ADB) recently signed a loan agreement with the Indian government to provide $1.22 billion in funding for projects aimed at improving connectivity and infrastructure in four Indian states. The loan will cover a range of projects including improving the power sector and highways in the northeastern states of Tripura and Assam, expanding the metro rail network in the southern city of Chennai, and improving key economic areas in the western state of Maharashtra.
$350 Million Loan for Maharashtra
- The ADB loan for Maharashtra will provide funding for the upgrade of 319 kilometers of state highways and 149 kilometers of district roads, incorporating climate and disaster-resilient features to strengthen the state’s core road network in 10 districts.
- The project will also include the construction of 5 kilometers of major district roads connecting Nanded and Telangana, and will promote gender equality and social inclusion in highway programs, schools, health services, and social services.
- Integrated service centers will also be set up to provide basic sanitation, education, and other services.
$300 Million Loan for Assam
The ADB loan for Assam will fund the upgrading of six road sections in the state’s western, central, and southern regions, which are connected to SASEC corridors linking India with Bhutan and Bangladesh. The upgraded roads are expected to boost cross-border trade and transport and will complement the multimodal logistics park being built in Jogighopa and another proposed in Silchar, which will serve road, rail, inland waterway, and air transport facilities.
$350 Million Loan for Chennai Metro Rail Network
- The ADB loan for the expansion of the Chennai metro rail network will support the development of three new lines: Line 3, Line 4, and Line 5.
- For Line 3, the loan will fund the construction of 10.1 kilometers of the elevated section between Sholinganallur and State Industries Promotion Corporation of Tamil Nadu-2, including nine metro stations and system components.
- For Line 4, the loan will help fund the construction of 10 kilometers of the underground section between Lighthouse and Meenakshi College, including nine stations.
- For Line 5, the loan will finance 31 kilometers of system components such as electrical, mechanical, power, and telecommunication infrastructure between Chennai Mofussil Bus Terminus and Okkiyam Thoraipakkam. The stations will incorporate disaster- and climate-resilient features and will be responsive to the needs of the elderly, women, children, differently abled, and transgender people.
$220 Million Loan for Tripura Power Sector
- The ADB loan for the power sector in Tripura will fund the replacement of the Rokhia power plant with a highly efficient combined cycle gas turbine, which will reduce greenhouse gas emissions through fuel saving. The project will also modernize the state’s power distribution network and build institutional capacity.
- The project will also promote gender equality through pilot testing of gender and socially inclusive workplace practices and will support at least 15 selected women’s self-help groups (SHGs) under the Tripura Rural Livelihood Mission.
- The SHGs will target the socio-economic empowerment of the rural poor and women of the state, including those in the farming and non-farming sectors.