MANU/PIBU/0898/2018

Department/Board : Press Information Bureau

Date : 31.05.2018

Government of India and World Bank signs $500 Million Additional Financing for Pradhan Mantri Gram Sadak Yojana Rural Roads Project

The Government of India and the World Bank today signed a $500 million loan agreement to provide additional financing for the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project, implemented by Ministry of Rural Development, Govt. of India, which will build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies.

The World Bank has supported PMGSY since its inception in 2004. So far it has invested over $1.8 billion in loans and credits mostly in the economically weaker and hill states across North India - Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh. It has built and improved about 35,000 km of rural roads and benefited about eight million people with access to all-weather roads.

The Loan agreement for the Project was signed by Shri Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Mr. Junaid Ahmad, Country Director, World Bank India, on behalf of the World Bank in the presence of Ms. Alka Upadhyaya, Joint Secretary (RC), Ministry of Rural Development.

"The PMGSY over the years has brought about a paradigm shift in the way rural roads are mapped, designed, monitored and built, involving communities especially women," said Shri Khare. "The additional finance will bring a new shift in construction technology using green and low carbon designs and climate resilient construction techniques. Now more rural communities will have access to better economic opportunities and social services.", Shri Khare added .

Adequate maintenance of the existing 4.6 million km of road network is emerging as a major challenge. Many parts of the existing road network are either vulnerable to or have already suffered damage from climate induced events such as floods, high rainfall, sudden cloud bursts and land-slides.

"To support the rural economy and communities and households that depend on rural livelihoods, it will be critical to ensure that infrastructure is built and maintained to withstand climatic changes," said Mr. Junaid Ahmad, World Bank Country Director in India. "This project will demonstrate how climate resilient construction can be integrated in the strategy and planning of rural roads," he added.

The PMGSY and the Bank's involvement under this additional financing, will emphasize on managing the rural road network through green and climate-resilient construction using green, low-carbon designs and new technologies - far beyond merely funding civil works. This will be done through the following measures: