India and the Asian Development Bank (ADB) have signed a contract here for a USD 300-million loan for the improvement of road connectivity along major corridors in Chhattisgarh.
Official source said, the project has been approved with an objective to improve more than 900 kilometer (km) of state roads, in line with the Chhattisgarh Road Master Plan, involving upgradation of the roads sections and strengthening culverts and bridges.
The agreement was signed by Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance and M. Teresa Kho, Country Director, India Resident Mission, ADB, sources added.
Speaking on the occasion, Mitash said the technical assistance grant of USD 1 million from ADB and UK's Department for International Development (DFID) would help improve the state's road maintenance management capabilities.
State highways form part of the important core road network in the state, and improvements in road connectivity would result in direct and indirect economic opportunities for people in project areas, who will benefit from faster travel times, lower costs, improved safety and enhanced links to markets and basic services, Kho said.
The loan would be funded from ADB's ordinary capital resources and has a principal repayment period of around 20 years.
The government of Chhattisgarh would provide counterpart finance of about USD 128 million to cover the estimated total project cost of USD 428 million, sources revealed.