India and ADB signs US$ 350 million loan for developing district roads in Madhya Pradesh

Government of Madhya Pradesh will provide counterpart support of $150 million

The Asian Development Bank (ADB) and the Government of India have signed a US$ 350 million loan agreement for improving about 1500 kilometers of major district roads in Madhya Pradesh in line with the State's Road Development Plan.

The project would complement the efforts of Government of Madhya Pradesh to bring about seamless road connectivity across the State by linking State Highways and Rural roads through District roads. It would provide an easier access to basic services and markets to people.

The Project will involve upgrading roads with concrete pavements, strengthening culverts and bridges, and maintaining the improved road assets for a period of five years after construction, on a performance based payment format. The Project will also develop and introduce a cashless accident victim treatment facility in the state, and improve the accident response system.

Madhya Pradesh is the second-largest State in the country, with an area of about 308,000 square kilometers and a population of about 73 million. Agriculture still underpins the State's economy and about 70% of the people live in rural areas.

The State has also been undertaking a number of development initiatives to boost industrial activity, such as the Pithampur-Dhar-Mhow Region as a key node on the Delhi-Mumbai Industrial Corridor, as well as many industrial areas and industrial growth centers. Because industrial development and agricultural production are dispersed, the road network is a vital element of the economic infrastructure.

Along with ADB's loan, the Government of Madhya Pradesh will provide counterpart support of $150 million. The project will run for almost four years with an expected completion date of March 2021.

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