Why in News?

• India and Asian Development Bank (ADB) has signed $110 million loan to finance the upgrade of 2,800 kilometers all-weather rural roads in the State of Madhya Pradesh under the Prime Minister’s Rural Roads Program (PMGSY).

Significance of the Program:

• The overall program is aimed at improving rural connectivity, facilitating safer and more efficient access to livelihood and socio-economic opportunities for rural communities through improvements to about 12,000 kilometers rural roads across the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. The loan will improve mobility for self-employment and livelihood opportunities in rural areas by improving access to district centers.
• The project will continue to 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. Considering the increased rainfall and storm surges in Madhya Pradesh, the road designs take into account the climate risks with measures such as greater elevation of road embankments and slope protection. Women were extensively consulted during the project design and will gain some key benefits, including improved access to healthcare, livelihoods and schooling.

Tranche Loans:

• Tranche 2 loan is part of the $500 million Second Rural Connectivity Investment Program for India approved by the ADB Board in December 2017. Tranche 1 loan of $250 million is currently under implementation in the 5 project states, upgrading over 6,000 km of rural roads.