What is the issue ?
- The Government of India and the World Bank signed a $500 million loan agreement to provide additional financing for the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project.
Pradhan Mantri Gram Sadak Yojana
- PMGSY is implemented by Ministry of Rural Development, Government of India, which will build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies.
- The World Bank has supported PMGSY since its inception in 2004.
- So far it has invested over $1.8 billion in loans and credits mostly in the economically weaker and hill states across North India – Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh.
- It has built and improved about 35,000 km of rural roads and benefited about eight million people with access to all-weather roads.
How will the additional financing help ?
- The PMGSY and the Bank’s involvement under this additional financing, will emphasize on managing the rural road network through green and climate-resilient construction using green, low-carbon designs and new technologies – far beyond merely funding civil works.
- The Additional Financing will also fill the gender gap by creating employment opportunities for women in construction and maintenance.
About PMGSY :
- Government have launched the Pradhan Mantri Gram Sadak Yojana on 25th December, 2000 to provide all-weather access to unconnected habitations.
- The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a 100% Centrally Sponsored Scheme. 50% of the Cess on High Speed Diesel (HSD) is earmarked for this Programme