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)
In News:
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.
Key takeaways
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 offershard 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.
