Rural Connectivity Current Affairs

Pradhan Mantri Gram Sadak Yojana: Government inks $500 million loan agreement with World Bank

Government (Union Finance Ministry) has signed US $500 million (Rs 3,371 crore) loan agreement with World Bank to provide additional financing for Pradhan Mantri Gram Sadak Yojana (PMGSY) rural road projects. The loan has maturity of 10 years along with 3 year grace period. It will provide additional financing for PMGSY Rural Roads Project to build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies.

Key Facts

World Bank has supported PMGSY since its inception in 2004. So far it has invested over US $1.8 billion in loans and credits mostly in economically weaker and hill states across North India viz. Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh. It has helped to built and improved about 35,000 km of rural roads and benefited about 8 million people with access to all-weather roads.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

PMGSY fully funded centrally sponsored scheme launched in 2000. It aims to provide single all-weather road connectivity to all eligible unconnected habitations in the rural areas with population of 500  persons  and  above  (in plain areas) and 250 persons and above (in Hilly States , desert Areas,  Tribal   areas   and   selected Tribal and Backward Districts). Union Ministry of Rural Development is nodal ministry for implementation of Scheme.

For this scheme, 75  paise  per  litre  has  been  earmarked out  of  cess  levied on high speed diesel. It considers habitation as unit for providing connectivity and not a revenue village. The scheme encourages use of “Green Technologies” and non-conventional materials (like waste plastic, geo-textiles, fly-ash, iron and copper slag etc) for constructing rural roads.

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Government inks $210 million loan agreement with World Bank for Madhya Pradesh Rural Connectivity Project

The Union Government, Madhya Pradesh Government and World Bank have signed $210 million loan agreement for Madhya Pradesh Rural Connectivity Project. The Project aims to improve durability, resilience and safety of gravel surfaced rural roads and enhance capacity of state to manage its rural roads network.

Madhya Pradesh Rural Connectivity Project

The project will cover 10,510 km stretch of rural roads in Madhya Pradesh that fall under Chief Minister’s Gram Sadak Yojana (CMGSY) program. Of this 10,000 km will be upgraded from existing gravel to bituminous surface roads, while 510 km of new roads will be built to same bituminous surface standard.

The project will undertake resilience measures such as surface sealing of roads, embankment pitching and balancing culverts to prevent damages caused by extreme flood events. It will enhance rural road connectivity instate which will open up opportunities for economic development and access to social services for beneficiary communities in the state and help in reducing poverty.

The project will focus on improving road safety by collecting accident data and analysing it at central and state levels through implementation of Road Accident Database Management System (RADMS) and strengthen road safety capacity at central level and focus on training.

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