Asian Infrastructure Investment Bank (AIIB) has approved a $140m loan to improve rural road connectivity in the Indian state of Madhya Pradesh.

The project, co-financed with the World Bank, is expected to improve roads across 5,640 villages and benefit nearly 1.5 million rural residents.

Better farm-to-market road connections will help to enhance the livelihood of this rural population and increase income earning opportunities.

AIIB vice-president and chief investment officer D.J. Pandian said: “Promoting sustainable growth in India through investment in rural infrastructure will require substantial financing.

“I am glad that AIIB’s participation in this project will contribute to reducing this financing gap and enhance overall development in the region.”

“I am glad that AIIB’s participation in this project will contribute to reducing this financing gap and enhance overall development in the region.”

The scope of the project involves upgrading the gravel surfaced roads to a sealed surface standard, building additional linkages to the villages with significant growth potentiality and improving institutional capacity by implementing a rural road asset management system.

Furthermore, the project involves carrying out a road safety programme and developing road safety management capacity with road accident data management system.

AIIB Investment Operations director general Supee Teravaninthorn said: “This project will provide sustainable and safe last-mile connectivity to small villages and improve mobility of the rural population of Madhya Pradesh.

“The project will stimulate economic development in the entire state and improve the livelihoods of the rural population, especially rural women and girls.”

The project is also expected to facilitate student enrolment in schools and higher education programmes.