Current Affairs

Government Signs $250 Million Loan Agreement with ADB

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.
Government Signs $250 Million Loan Agreement with ADB
  • These 5 states include Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.
  • This move has been taken under the Pradhan Mantri Gram Sadak Yojana (PMGSY).
  • 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.

Aim of the programme

  • 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.

Other Facts

  • The First Tranche Loan is part of the $500 million 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.
  • As far as the climatic conditions are concerned, 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.
Government Signs $250 Million Loan Agreement with ADB Government Signs $250 Million Loan Agreement with ADB Reviewed by Aman Bhatia on February 01, 2018 Rating: 5

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