India and ADB sign a $1.2 billion loan agreement for infrastructure projects

The Indian government and the Asian Development Bank (ADB) have signed a $1.22 billion loan agreement to boost the connectivity of major economic zones across Indian states. The agreements would cover projects meant to boost the power sector and highways in the north-eastern states of Tripura and Assam, metro rail connectivity in the city of Chennai, and vital economic areas in Maharashtra. Under the terms of the $350 million loan to Maharashtra, at least 319 km of state highways and 149 km of district roads will be upgraded with climate- and disaster-resilient features. With a $300 million loan to improve connectivity in Assam, six road sections in the state’s western, central and southern regions will be upgraded. The $350 million loan for the expansion of the Chennai metro rail network covers the construction of three new metro lines – 3, 4 and 5. The $220 million loan to strengthen Tripura’s power sector will finance the replacement of the Rokhia power plant with a highly efficient combined cycle gas turbine.