Asian Development Bank (ADB) and India sign $177 million loan for Maharashtra roads
Part of: GS-Prelims and GS-II – Global Groupings & GS-III – Infrastructure (Roads)
- The Asian Development Bank (ADB) and the Indian Government recently signed a $177 million loan to upgrade state highways and major district roads in the state of Maharashtra.
- The project will improve connectivity between rural areas and urban centers in the state.
- It will enable rural communities to better access markets, employment opportunities and services.
- Mobility will improve.
- It will expand development and livelihood opportunities to second-tier cities and towns which will lead to reduction in income disparities.
- It will also strengthen road safety measures by developing a road safety audit framework that will protect vulnerable groups such as the elderly, women, and children.
- Another feature is to update road maintenance system by encouraging 5-year performance-based maintenance obligations to contractors.
Important value additions
Asian Development Bank (ADB)
- It is a regional development bank.
- It was established on 19 December 1966.
- Headquarters: Mandaluyong, Philippines.
- It was established to promote social and economic development in Asia.
- Motto: ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia & the Pacific, while sustaining its efforts to eradicate extreme poverty.
- It offers hard loans (currency) on commercial terms primarily to middle income countries in Asia and
- It provides soft loans (loan with a below-market rate of interest) to poorer countries in the region.
- Both types of loans are sourced from the bank’s ordinary capital resources (OCR).
- Five largest borrowing countries are China, India, Pakistan, Indonesia and Bangladesh.