The Asian Development Bank (ADB) will provide India with a $350m loan to develop, improve and upgrade roads in the state of Madhya Pradesh.

The project would involve renovation work on 1,600km of state roads by widening lanes, surface improvements and improvements of culverts and bridges.

These improvements will help in bringing down travel times, improve traffic flow and enhance road safety. It will also lead to improved access to markets and social services for poor and remote communities.

"The loan will address a neglected part of ongoing road network upgrades, with these secondary roads providing a key link between rural roads and state highways."

As part of the construction contracts, five-year performance-based maintenance contracts will be included in the project, which will ensure that the roads being built meet the required standards.

ADB principal transport specialist, transport and communications division in South Asia department Ravi Peri said: "Madhya Pradesh, India’s second largest state, has widely scattered industrial and growth centres and agricultural production areas, so an efficient and safe road network is essential for the economy and well-being of citizens.

"The loan, which is ADB’s first in the district roads sector in India, will address a neglected part of ongoing road network upgrades, with these secondary roads providing a key link between rural roads and state highways."

ADB had previously given a loan to the state, which is being used to develop an accident response system. The state is working on this project to create insurance links to finance immediate hospital treatment costs for road accident victims.

The cost of the complete project is estimated to be approximately $500m and the remaining amount will be funded by the state government. The project is expected to be completed in April 2018.