The Asian Development Bank (ADB) and the Government of India have signed a $250m loan agreement to fund the construction of 6,254km of all-weather rural roads in five states under the Prime Minister’s rural roads programme (PMGSY).

The loan amount will be used to develop rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.

India Ministry of Finance Department of Economic Affairs Joint Secretary (Multilateral Institutions) Sameer Kumar Khare said: “The ADB-funded investment programme will provide continued assistance to the PMGSY and support the government’s long-term goal for rural development.

“The programme is likely to have a transformative impact in terms of rural economy and would also bring in greater efficiency in terms of access and connectivity for the rural people in the five states.”

The first tranche of the loan amount forms a part of the $500m Second Rural Connectivity Investment Program for India that was approved by ADB last month.

“Road maintenance will be ensured through the provision of a five-year post-construction maintenance in each civil works contract.”

The programme aims to improve nearly 12,000km of roads in the five states to facilitate safer and efficient access, as well as encourage socio-economic opportunities in the rural areas.

ADB India country director Kenichi Yokoyama said: “The investment programme will support the government’s drive for innovative approaches to reduce costs, conserve non-renewable natural resources, and promote the use of waste materials in rural road construction.

“Road maintenance will be ensured through the provision of a five-year post-construction maintenance in each civil works contract.”

All road designs to be developed under the awarded loan amount will be devised considering the associated climate risks in the five states, such as increased rainfall and storms.