ADB investment programme of $500 million to improve rural roads in five Indian states

Asian Development Bank ( ADB) has approved a multi-tranche financing facility (MFF) for the second Rural Connectivity Investment Programme totaling $500 million to improve rural roads in five Indian states.

The investment programme will construct and upgrade over 12,000 kilometers (km) of rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. It will also support the 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. “Building on the success of our previous assistance in the rural roads sector, ADB will work closely with the Government of India to provide the connectivity to improve rural communities’ access to markets, health centers, education facilities, and other opportunities.”

Rural roads are vital components of India’s overall road network, comprising 80% of all paved roads in the country and connecting rural areas with major district roads, state roads, and national highways.

The programme builds on the first Rural Connectivity Investment Programme in 2012, financed by ADB through an $800 million MFF, which added about 9,000 km of all-weather rural roads in the same states.

The investment program’s first tranche, amounting to $250 million, expected in December 2017, will construct an initial 6,254 km of all-weather rural roads. It will also pave the way for the training of about 2,000 project engineers on road safety and road maintenance. The programme's second tranche, for the same amount, is expected to come in the third quarter of 2019.