The Asian Development Bank (ADB) has provided a $200m loan for a major road project in the Indian state of Jharkhand.

The 311km two-lane road will connect the state’s northern region to the national highway network, and once built will boost growth and reduce poverty in the region, according to the bank.

ADB South Asia Department principal transport specialist Hideaki Iwasaki said this project will mean that travel time and costs will be reduced by as much as half.

“The road will provide better access for local communities to markets and social services such as education and health, and also encourage industrial development,” Iwasaki said.

The total cost of the project is $240m, of which ADB is financing 83% while the government will cover the remaining cost.

The project is scheduled to be complete by June 2014, with the Road Construction Department as the executing agency.