Asian Development Bank has signed an
agreement on 28 August 2006 with the Indian government to give a $180 million
(Rs.828 crore) loan to the rural roads development programme.
This is the first tranche loan under
the multi-tranche financing facility (MFF) for the $750 million (Rs.3,450 crore)
Rural Roads Sector II Investment Programme, which was approved in December 2005.
This financing facility is among
several initiatives that have been taken under the Innovation and Efficiency
Initiative (IEI) programme to reform ADB s business model, and to enhance
flexibility to meet the needs of clients such as India better.
The Rural Roads Sector II Investment
Programme is designed to further the Government's Rural Roads Development
Programme (Pradhan Mantri Gram Sadak Yojana) in different states.