The World Bank on Thursday approved USD 13 million to modernise the road network of North Indian state Mizoram.
The project will help widen and improve 180 km of state highways, and rehabilitate and maintain another 300 km, the World Bank said.
It will also finance improvements in equipment and training for the state Public Works Department.
"Improvements in basic infrastructure including highways are critical to stimulate economic development," said Roberto Zagha, World Bank Country Director for India.
"With growth there has been an increase in demand for better infrastructure. Continued investments in improving Mizoram’s road infrastructure will support the region’s growth and service delivery goals," he said.
The Mizoram State Roads Project was initially approved in 2002 and has demonstrated transformative results, the bank said, adding that the road improvements under the project had reduced the cost of passenger travel between different towns.
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"The project has already, over the last eight years, helped reduce travel time by over 40 percent on 472 km of completed roads in the state", it said in a statement.
Besides, according to World Bank project team leader Ashok Kumar, the programme has demonstrated many economic benefits to local residents through increased land values, agricultural incomes, growth in the local handicraft market, and new businesses opening up along roads.