India signs $273 million loan pact with ADB to fund rural roads

In order to continue improving the rural roads in the states like Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal, the Government of India along with Asian Development Bank (ADB) has signed a $273 million loan agreement. This loan constitutes the third tranche, which is also the last tranche of the $800 million financing facility under the Rural Connectivity Investment Programme (RCIP).

The loan will help to construct over 6,000 kilometers of all-weather rural roads in the aforesaid five states to be completed in June 2018, benefiting over 4,200 rural habitations. The enhanced connectivity will improve access of rural communities to markets, district headquarters, health and education facilities, and other centers of economic activity.

The Ministry of Rural Development (MORD) is the executing agency of the project at the central level, while the Governments of States of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal have been entrusted with overall implementation at the respective State level. The third tranche is expected to be completed by December, 2017. The implementing agencies at the State level will be the respective State Rural Roads Development Agencies.