Mumbai: The Asian Development Bank (ADB) is lending $180 million (Rs 828 crore) to the rural roads programme in India. This is the first tranche of loan under the $750 million (Rs 3,450 crore) multi-tranche financing facility (MFF) for road sector investments, approved in December 2005.
ADB has signed an agreement with the government of India for release of the first tranche of $180 million (Rs 828 crore) under the Rural Roads Sector-II Investment Programme, ADB said in a statement.
Arvind Mayaram, joint secretary, department of economic affairs, government of India, and Tadashi Kondo, country director, ADB, signed the agreement.
The ADB loan to the rural roads programme is designed to further the government's Pradhan Mantri Gram Sadak Vikas Yojana in different states.
The MFF will provide clients more time to avail of ADB assistance in line with their investment needs while, at the same time, reducing commitment charges. This financing facility is among several innovative lending programmes that have been undertaken to reform ADB's business model, and to enhance flexibility to meet the needs of clients such as India better.
ADB said it is planning to extend the MFF model to other loans also.