Asian Development Bank (ADB) has sanctioned a sum of USD 220 million to the Rajasthan government as a part of the earlier approved “Rajasthan State Highways Investment Programme”.

 The USD 220 million is the first tranche of the whopping USD 500 million, which was approved by the ADB Board in May 2017. The loan amount of USD 500 million has been allocated towards the Rajasthan State Highways Investment program.

Rajasthan State Highways Investment Programme – What is it?

The investment program encompasses upgradations of about 2000 kilometers of state highways and major district roads to two- lane or intermediate-lane standards. It is directed towards improving road connectivity as well as transport efficiency and safety on state highways of Rajasthan. The program aims at boosting road safety and increasing transport efficiency, ADB said.

This is a collaborative partnership in which the ADB and the government will play substantial roles in building a strong framework to strengthen the transportation efficiency, apart from ensuring on-road safety.

Significance of loan agreement

On being asked about the ADB’s involvement in boosting transport efficiency, Minister of State for Finance Arjun Ram Meghwal highlighted the importance of loan agreement between the government and the ADB.

The transport efficiency of the state highway will be bolstered through the combined efforts of the ADB and the government, Meghwal said.

The first USD 220 million will be consumed in upgrading 1000 km of state highways and major district roads.

Additional benefits of Rajasthan Highways Programme

In addition to increasing road transport efficiency, the programmed aims to fortify the capacity of state public works department in different areas of road asset management, project management, and road safety.

Loan Agreement: Terms and Conditions

The loan will be sanctioned for a 25-year period, which includes an 8-year grace period. Moreover, the interest rate chargeable on the amount will be determined in accordance with LIBOR rate.


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