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ADB, India sign loans worth $412 mn for projects in Maharashtra, Jharkhand

ADB, India sign loans worth $412 mn for projects in Maharashtra, Jharkhand

For Maharashtra, the lender signed an additional loan of $300 million, while ADB and the government signed another loan of $112 million for Jharkhand

ADB gives loans for two projects ADB gives loans for two projects

Asian Development Bank and India have signed two separate loans totalling $412 million for projects in Maharashtra and Jharkhand. For Maharashtra, the lender signed an additional loan of $300 million to scale up rural connectivity. ADB and the government signed another loan of $112 million for development of water supply infrastructure in Jharkhand.

The additional financing of $300 million for the ongoing Maharashtra Rural Connectivity Improvement Project will help to improve an additional 1,100 rural roads and 230 bridges for a total length of 2,900 kilometers (km) in 34 districts of the state. The lender had approved $200 million in financing in August 2019.

“With the additional financing, the overall project will improve the condition and safety of 5,000 km of rural roads and over 200 bridges connecting rural communities with productive agricultural areas and socioeconomic centres in Maharashtra,” said Department of Economic Affairs Additional Secretary Rajat Kumar Mishra who signed the loan along with ADB Country Director for India Takeo Konishi.

The project is expected to generate around 3.1 million person-days of employment for local communities, out of which at least 25 per cent is for women.

The $112-million loan for Jharkhand will develop water supply infrastructure and strengthen capacity of urban local bodies for improved service delivery in four towns in the state. In these towns, four water plants with a combined capacity of 275 million litres per day will be established, along with 940 kilometers of water distribution network that will supply to around 115,000 households.

Mishra who, along with Konishi, was a signatory to this loan as well, said, “The project is aligned to the Government of Jharkhand’s priority to improve urban services in the state and will ensure continuous, treated piped water supply in the state capital of Ranchi and other three towns of Hussainabad, Jhumri Telaiya, and Medininagar located in economically and socially backward areas.”

This is ADB’s first urban project in the state. The lender said that this model for continuous water supply could be replicated by other low-income states too.

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