The government on January 3, 2023, signed a loan agreement worth $1.22 billion with Asian Development Bank (ADB). This credit will be used to develop infrastructure in various states, the finance ministry said in a statement.
The loan will primarily be used to improve power and highways infrastructure in Assam and Tripura, metro connectivity in Tamil Nadu’s Chennai and improvement of economic areas in Maharashtra, the ministry statement said.
$350 million to improve road connectivity in Maharashtra
ADB and the government signed a $350-million loan pact to improve connectivity of key economic areas in the state of Maharashtra.Using this credit, nearly 319 km of state highways and 149 km of district roads will be upgraded incorporating climate and disaster-resilient features to strengthen Maharashtra’s core road network in Ahmednagar, Hingoli, Jalna, Kohalpur, Nagur, Nanded, Nashik, Pune, Sangli, and Satara.
“This will help connect underdeveloped rural communities with off-farm opportunities and markets, improve access to health and social services and improve agricultural value chains by reducing transport costs for small and medium-sized enterprises,” the ministry said. Part of this plan includes building 5 km of district roads to connect Nanded and Telangana.
$350 million to expand Chennai metro network
ADB and the government signed a $350 million loan to build new lines and improve the connectivity of the metro rail system in Chennai with the city’s existing public transport system. This tranche is part of the $780-million multi-tranche financing facility for the project approved by ADB on December 8, 2022, to develop three new metro lines in Chennai.
$300 million to improve connectivity in Assam
Under the pact, ADB will offer $300 million loan to upgrade over 300 km of state highways and major district roads in Assam.
The roads to be upgraded under the project, including six road sections in the state’s western, central and southern regions, are connected to SASEC corridors linking India with Bhutan and Bangladesh, and are expected to boost cross-border trade and transport. The project will complement the multimodal logistics park being built in Jogighopa and a another proposed in Silchar to serve road, rail, inland waterway, and air transport facilities.
The project will expand state highways and major district roads from single lane to two lanes and introduce new climate- and disaster-resilient structures. It will establish pedestrian and public transport facilities, elevate highways in flood-prone areas, and include landslide prevention structures in hilly and mountainous areas.
$220 million to strengthen power infra in Tripura
A $220-million loan agreement was also signed to improve energy security, quality of supply, efficiency, and resilience of power sector in Tripura. This credit will fund the replacement of the Rokhia power plant with a highly efficient combined cycle gas turbine that will reduce greenhouse gas emissions through fuel saving, modernize the state’s power distribution network and build institutional capacity and overall business process of the project executing agencies.
