Government inks $110 million loan agreement with ADB to upgrade rural roads in MP
Government has inked $110 million loan agreement with Asian Development Bank (ADB) to upgrade all-weather rural roads in Madhya Pradesh under Pradhan Mantri Gram Sadak Yojana (PMGSY). It is second tranche of $500 million Second Rural Connectivity Investment Programme for India approved by ADB in December 2017.
Rural Connectivity Investment Programme
The overall Second Rural Connectivity Investment Programme is aimed at improving rural connectivity, safe and efficient access to livelihood and socio-economic opportunities for communities in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. It plans to upgrade about 12,000 km rural roads across the five states. Tranche 1 loan of $250 million is currently under implementation upgrading over 6,000 km roads.
The Tranche 2 of the loan will provide continued assistance to PMGSY by upgrading rural roads in Madhya Pradesh. This will support the government’s long term goal to achieve inclusive economic growth in rural India. It will also improve mobility for self-employment and livelihood opportunities in rural areas by improving access to district centres. It will also support government’s drive for innovative approaches to reduce costs, conserve non-renewable natural resources and promote use of waste materials in rural road construction.
Asian Development Bank (ADB)
ADB is multilateral lending agency based in Manila, Philippines. It was established on 19 December 1966. It aims to reduce poverty in Asia and the Pacific region through inclusive environmentally sustainable growth, and regional integration. It provides finance to both sovereign countries as well as to private parties. It provides hard loans to middle-income countries and soft loans to poorer countries.
ADB has 67 members – 48 from Asia-Pacific region including India and is collectively owned by these 67 members. The non-Asia Pacific region members are only developed countries. Most of ADB’s lending is concentrated in 5 operational areas viz. Education; Environment, Climate Change & Disaster Management, Finance Sector Development, Regional Cooperation & Integration, and Private sector lending.