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ADB To Provide $200 Million To Upgrade Maharashtra Rural Roads

The Asian Development Bank (ADB) and the Government of India signed a $200 million loan to upgrade rural roads to all-weather standards in 34 districts of Maharashtra State to improve road safety and better connect rural areas with markets and services. Improving rural connectivity is one of the key priorities of the Government of India, which will help enhance rural livelihoods and alleviate poverty among remote rural communities in project districts, said the ADB Additional Secretary after signing the loan agreement. Enhanced road connectivity and better access to markets will help the farmers increase agricultural productivity and incomes, he said.

The project will improve the condition of about 2,100 kilometers (km) of rural roads to all-weather standards, with climate resilience and safety features, connecting rural communities with productive agricultural areas and socioeconomic centers, the report said. Provision of contractual maintenance for 5 years following construction has also been provided under the project.

Maharashtra has an extensive road network, with rural roads making up two thirds of the network. But more than half of these rural roads are unsealed, making them unsuitable for motorized traffic and impassable during the rainy season. Road safety has been a growing concern with the state accounting for over 8% of all fatal road accidents in India.

Accompanying the loan is a technical assistance grant of $1 million for institutional strengthening of the MRRDA in areas such as road asset management, road safety, climate-resilient design and construction and web-based real-time project monitoring. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members49 from the region. In 2018, it made commitments of new loans and grants amounting to $21.6 billion.

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