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ADB approves USD 400 million loan to enhance road connectivity in Maharashtra

#Taxation & Finance News#Infrastructure#India#Maharashtra
Last Updated : 27th Nov, 2025
Synopsis

The Asian Development Bank has sanctioned a USD 400 million results-based lending program to improve road connectivity across 34 districts in Maharashtra, focusing on the climate-sensitive and economically lagging Marathwada and Vidarbha regions. The initiative will benefit over 1.7 million people, including residents of around 80 villages and 410 rural communities, by upgrading nearly 350 km of state highways and 2,577 km of rural roads. The project aims to link rural areas to markets, logistics hubs, healthcare, education, and other essential services while promoting inclusive economic growth.

The Asian Development Bank (ADB) has approved a USD 400 million results-based lending program aimed at strengthening road infrastructure across Maharashtra. The funding will focus on improving connectivity in 34 districts, with special attention to the Marathwada and Vidarbha regions, which are both economically lagging and vulnerable to climate-related challenges. The initiative aims to link rural communities to key markets, logistics hubs, healthcare facilities, educational institutions, and other essential services.


The upgrade project will directly benefit over 1.7 million residents living within walking distance of the improved roads. This includes inhabitants of at least 80 villages and approximately 410 rural communities. The program encompasses upgrades covering nearly 350 kilometers of state highways and 2,577 kilometers of rural roads.

ADB Country Director for India, Mio Oka, stated that the program aims to promote balanced and inclusive economic growth in Maharashtra by enhancing road access to rural villages, post-harvest centers, and essential social services. He highlighted that the results-based lending approach allows implementing agencies to pool resources, coordinate efforts, and achieve shared development outcomes effectively.

This project continues ADB's focus on supporting infrastructure in India, particularly in areas where improved connectivity can drive socio-economic development, reduce regional disparities, and enhance access to services for rural populations. Past road development initiatives in Maharashtra by ADB have shown positive impacts on local economies, reducing travel time and improving market access for agricultural produce.

Source PTI

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