Multilateral funding agency Asian Development Bank (ADB) on Wednesday said it will provide a $500 million loan to improve rural road connectivity in five states, including Assam and West Bengal.
The board of directors of ADB has approved the multi- tranche financing facility (MFF) for the ‘Second Rural Connectivity Investment Programme’ to improve rural roads in five states of India, ADB said in a statement.
Under this project, ADB will invest to construct and upgrade over 12,000 kilometre rural roads in Assam, Madhya Pradesh, Chhattisgarh, Odisha and West Bengal. It will also support state governments to improve rural road maintenance and safety. “All-weather roads are crucial for economic growth, especially in India’s rural areas,” said Andri Heriawan, an ADB Transport Specialist.
ADB is building on the success of previous assistance for rural roads in India.