MP seeks Rs 1,840 cr ADB loan for roads

Madhya Pradesh has sought a loan of Rs 1,840 crore from the Asian Development Bank for the construction of 1628.52 km of roads.

The Madhya Pradesh Road Development Corporation will be the nodal agency for the purpose. The loan is expected to be released shortly. Repayment of the loan will start from 2012.

The project will cover 22 roads. "Tenders have already been floated and construction on these roads will begin from September this year," a government source said, adding, "The state cabinet has given its approval to the contract, institutional development action plan and procurement plan."

Some of the roads connect neighbouring districts like Bareli-Piparia road of 39 km will connect Hoshangabad and Raisen district, which are separated by the Narmada river. While other roads will connect Madhya Pradesh to other states like Bamhor-Maharashtra border road of 65 km will connect the state to Maharashtra.

Other roads are for remote areas like Seoni-Chirai Dongri of 92.6 km, Balaghat-Nainpur of 80.6 km, Lakhnadaun-Mandla-Dindori of 149.8 km.

The ruling BJP government has yet to construct roads to connect the state. Of the total road length of 72,000 km, only 12,000 km roads are in good conditions.

The State has constructed only 250 km of roads with an investment of Rs 55.85 crore since 2001. The twelfth finance commission has also recommended 608 km of road with a financial assistance of Rs 208 crore. These roads will connect remote areas to districts.

On the other hand travelling on public private partnership or built-own-operate and transfer (BOT) pattern is costlier. A taxi operator has to pay Rs 216 to cover 200 km road as toll while the same is Rs 16 in Maharashtra. Further the quality of the roads is very poor. While a hauler pay Rs 450 to cover the same length.

Last year main artery of Madhya Pradesh that connects two major commercial towns namely Bhopal and Indore exposed due to rains defying tall claims of the state government that roads are of world standard.

Although state government blamed it for wrong assessment by survey agencies, insiders in government say corruption is still rampant in awarding road contracts.