India signs first loan agreement with New Development Bank for $350 million

India on Thursday signed a loan agreement with the New Development Bank (NDB) for $350 million funding for a project involving development and upgradation of major district roads in Madhya Pradesh.

This is the first loan agreement for NDB-assisted project in India.

Raj Kumar, joint secretary in the Department of Economic Affairs (DEA) and Xian Zhu, vice president and chief operating officer of the New Development Bank signed the loan agreement while Pramod Agrawal, principal secretary, Public Works Department and Manish Rastogi, managing director, Madhya Pradesh Road Development Corporation (MPRDC) signed the project agreement.

The objective of the project is upgradation of major district roads in the state of Madhya Pradesh to improve connectivity of the interior areas of the state with the national and state highway networks. The project would include upgradation, rehabilitation or reconstruction of approx 1,500 km of district roads to intermediate lane, all-weather standards, with road safety features and improved road asset maintenance and management.

The project outcome is to improve transport connectivity to the interior regions and resultant boost to economic activity in the rural hinterland.

The project implementation is 5 years. Government of Madhya Pradesh and the MPRDC are the implementing agencies.