K'taka to raise $200 mn loan for road projects

With the condition of roads in the state, particularly in the interior areas, deteriorating for lack of maintenance, the Karnataka government has proposed to raise $200 million from the Japanese Development Bank to improve them.

The state has a network of 37,000 km of major district roads (MDRs) which need maintenance immediate.

Most of these roads fall under the purview of the respective district administrations and the public works department. The roads could not be improved for lack of funds all these years though they were supposed to be maintained every year.

"The state government is engaging the Japanese Development Bank to raise a soft loan ($200 million) to maintain the major district roads. We hope it will be approved at the earliest," said Karnataka's Public Works Secretary Sudhir Krishna on Wednesday.

He pointed out that the state government had similar plans for maintenance and upgrade of state highways.

"The government plans to approach the Asian Development Bank for a loan of $300 million. The funds will be used to upgrade and maintain the state highways," he added.

On the progress of Karnataka State Highways Development programme, Krishna said the state had successfully completed the first phase utilising the Rs 1,000 crore loan sanctioned by the World Bank. The project will be implemented in three phases by the state.

"Now, the World Bank has agreed to sanction another $200 million for the second phase of the State Highways Development project. We expect the funds to be released soon," he stated.

Krishna also announced the launch of electronic payment system for contractors and agencies involved in the National Highways road construction projects.