India inks $315 mn loan agreement with ADB

The government today signed a loan agreement worth $315 million with multilateral funding agency Asian Development Bank (ADB) for the Karnataka State highway improvement project.

The loan will help the government to rehabilitate and upgrade about 615 km of state highways, a Finance Ministry statement said.

The agreement was signed by Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs and Prodyut Dutt, Officer-in-Charge, ADB's India resident mission.

This is the first loan assistance from ADB in Karnataka for upgradation of road projects.

The project includes upgrading existing roads to two lanes, construction of by-passes, strengthening of culverts and bridges.

Besides, the loan also seeks to strengthen the capacity of state's Public Works Department (PWD) to develop, operate and maintain the state road network.