India signs USD 210 million loan pact with World Bank

New Delhi: India has signed a USD 210 million loan agreement with the World Bank to improve rural connectivity in Madhya Pradesh, the finance ministry said on Tuesday.

The project will cover 10,510 km stretch of rural roads in Madhya Pradesh that fall under the Chief Minister's Gram Sadak Yojana (CMGSY) programme. Of this 10,000 km will be upgraded from existing gravel to bituminous surface roads, while 510 km of new roads will be built to the same bituminous surface standard.

"The Government of India, the Government of Madhya Pradesh and the World Bank on Tuesday signed a USD 210 million loan agreement for the Madhya Pradesh Rural Connectivity Project," the finance ministry said in a statement.

The project is expected to improve the durability, resilience and safety of the gravel surfaced rural roads and enhance the capacity of the state to manage its rural roads network, it added. Joint Secretary in the Ministry Sameer Kumar Khare said the Madhya Pradesh roads project will enhance rural road connectivity in the state and open up opportunities for economic development.

"This project will leverage resources to support innovations in road construction, improve road safety, and reduce carbon footprint in the transport sector by mainstreaming climate resilient technology in road design and construction," said Hisham Abdo, Acting Country Director, World Bank India.

The project will undertake resilience measures such as surface sealing of roads, embankment pitching, and balancing culverts to prevent damages caused by extreme flood events.