Asian Development Bank (ADB) is providing a $273m loan to India to improve rural roads in five states.

ADB and the Indian Government have inked an agreement for the loan, which would be used to improve roads in rural areas of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.

The loan is part of the third and final tranche.

"The loan will help in constructing over 6,000km of all-weather rural roads in the aforesaid five states, benefiting over 4,200 rural habitations."

The loan is the last part of the $800m financing arrangement under a Rural Connectivity Investment Programme, reports The Economic Times.

The finance ministry stated: "The loan will help in constructing over 6,000km of all-weather rural roads in the aforesaid five states, benefiting over 4,200 rural habitations."

Indian Union Ministry of Finance Department of Economic Affairs joint secretary (bilateral cooperation) S Selvakumar said that the loan would be utilised for improving roads in rural areas, which will provide improved access to markets, health centres and educational facilities.

ADB country director Teresa Kho hoped that the final phase of the project will provide similar benefits to people as that of the other two phases.

The amount will be utilised for providing better road design and safety and asset management programmes.

The Union Ministry of Rural Development is the executing body at the central level while the respective states are responsible for overall implementation at their level. At the state level, it will be implemented by state rural roads development agencies.

The third phase is expected to be completed by December 2017.