The Government of India and the World Bank signed a $500 million loan agreement to provide additional financing for the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project.
- Using this additional financial aid, India aims to construct 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies. The loan has a 3-year grace period and a maturity of 10 years
- The additional financing will also fill the gender gap by creating employment opportunities for women in construction and maintenance.
- World Bank has supported Pradhan Mantri Gram Sadak Yojana since its inception in 2004. It has invested over USD 1.8 billion in loans and credits. The investment is majorly focused on the economically weaker and hill states across North India -- Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh.
- Under PMGSY, about 35,000 km of rural roads are built benefitting about eight million people with access to all-weather roads.
