Rs 400cr to repair Jharkhand roads

The condition of rural roads in Jharkhand has deteriorated alarmingly and the state government had approached the World Bank (WB) for assitance to repair them.

In response, WB has sanctioned Rs 400 crore package of assistance for the development of rural roads in the state.

The package is part of a $400 million loan which the WB offered to India for implementation of the "Pradhan Mantri Gram Sadak Yojna" (PMGSY).

The project envisaged a budget of Rs 36 crore in the first phase to build rural roads mainly in the Naxalite-prone districts within the current fiscal.

The second installment of the sanctioned amount worth approximately Rs 100 crore would be paid to Jharkhand on the completion of work covered in the first phase.

Official sources said the WB assistance would be in addition to the existing financial assistance being extended by the Centre to meet the ongoing expenditure on construction and maintenance of rural roads.

Sources said besides Jharkhand, the states of Himachal Pradesh, Rajasthan and Uttar Pradesh would get allocations from the $400 million fund.

According to official sources, the loan assistance from WB may be expanded to cover additional states like Bihar.

The WB package consists of a $100 million loan from the International Bank for Reconstruction and Development (IBRD).

An additional $300 million credit would come from the International Development Association (IDA), the Bank's concessionary lending arm.