ADB, India ink 3 loan pacts worth $605 mn

The funding agency has also agreed to tender $130 million loan to help India improve rail services

Asian Development Bank has inked three pacts amounting to $605.2 million with India for road development in the north-eastern region, power distribution in Madhya Pradesh and improvement of railways services in the country.

The Manila-based multi-lateral funding agency said it will provide $350 million loan for transmission and distribution systems for the growing power demand in Madhya Pradesh.

ADB has also agreed to tender $130 million loan to help India improve rail services along some of its busiest and most critical freight and passenger transport routes.

"The second tranche loan is part of the $500 million Railway Sector Investment programme approved by ADB in 2011, and will finance track components for 840 km of additional tracks along existing railway lines," ADB said in its release.

Another agreement of $125.2 million was signed between the central government and ADB for upgradation of roads in the north-eastern region.

"By upgrading these roads we will be able to improve mobility and accessibility for many communities that will help provide new economic opportunities, boost growth and reduce poverty," said M Teresa Kho, Country Director of ADB's India Resident Mission, who signed the second tranche of the loan under the North Eastern States Roads Investment programme.

"Better roads in the region will also significantly improve the investment climate for the private sector, both domestic and foreign," said Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs in Finance Ministry. He signed the pacts on government's behalf.

The project is expected to be completed by September 30, 2019 with improvements to more than 236 km of roads in Assam, Manipur, Mizoram and Tripura.

On loan agreement for power in Madhya Pradesh, Kho said: "Despite impressive network gains in recent years, demand for power in Madhya Pradesh is outstripping supply, and the quality and reliability of electricity - especially in rural areas - needs further improvements.

"The project will help increase capacity and operational efficiency in the electricity transmission and distribution system in Madhya Pradesh."

On rail project, ADB said the infrastructure will help deliver more energy efficient, safe, reliable, and environmentally friendly services along key routes.

"This will result in direct and indirect economic opportunities for about 210 lakh people in programme areas who will benefit from faster travel times, lower costs and improved links to markets, production centres and social service facilities," Kho said.

The investment programme targets busy freight and passenger

routes in Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh, including the critical Golden Quadrilateral corridor that connects Chennai with Mumbai.