Pradhan Mantri Gram Sadak Yojana: Government inks $500 million loan agreement with World Bank
Government (Union Finance Ministry) has signed US $500 million (Rs 3,371 crore) loan agreement with World Bank to provide additional financing for Pradhan Mantri Gram Sadak Yojana (PMGSY) rural road projects. The loan has maturity of 10 years along with 3 year grace period. It will provide additional financing for PMGSY Rural Roads Project to build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies.
World Bank has supported PMGSY since its inception in 2004. So far it has invested over US $1.8 billion in loans and credits mostly in economically weaker and hill states across North India viz. Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh. It has helped to built and improved about 35,000 km of rural roads and benefited about 8 million people with access to all-weather roads.
Pradhan Mantri Gram Sadak Yojana (PMGSY)
PMGSY fully funded centrally sponsored scheme launched in 2000. It aims to provide single all-weather road connectivity to all eligible unconnected habitations in the rural areas with population of 500 persons and above (in plain areas) and 250 persons and above (in Hilly States , desert Areas, Tribal areas and selected Tribal and Backward Districts). Union Ministry of Rural Development is nodal ministry for implementation of Scheme.
For this scheme, 75 paise per litre has been earmarked out of cess levied on high speed diesel. It considers habitation as unit for providing connectivity and not a revenue village. The scheme encourages use of “Green Technologies” and non-conventional materials (like waste plastic, geo-textiles, fly-ash, iron and copper slag etc) for constructing rural roads.
Month: Current Affairs - June, 2018