The New Development Bank (NDB) of the BRICS countries has approved a $525-million loan to Madhya Pradesh for infrastructure projects, it said on Thursday.
The Board of Directors of the NDB on Wednesday approved a $350-million loan for the Major District Roads Project II of Madhya Pradesh and $175 million for building and upgrading 350 bridges.
The loan will be used by the Indian government for on-lending to the Madhya Pradesh government for rehabilitating major district roads with a total length of about 2,000 km to improve the connectivity of the rural interior with the national and state highway networks, a press release issued by the Shanghai-based bank said.
The project will improve the road conditions and enhance the transport capacity, which will lead to a less travel time, reduced vehicle-operating cost, reduced emissions and improved road safety, it added.
The positive impacts of the project also include promoting an inclusive development of the rural communities in Madhya Pradesh and stimulating regional economic development through improved connectivity, enhanced accessibility and increased job opportunities, the release said.
The NDB will also provide a $175-million loan to the Madhya Pradesh Bridges Project, under which 350 bridges will be built or upgraded.
The NDB board also approved a non-sovereign loan of $300 million to SIBUR Holding of Russia for environmentally-sustainable infrastructure development related to the Zap SibNefteKhim project.
The NDB was set up by the BRICS (Brazil, Russia, India, China, South Africa) nations to promote green and infrastructure projects in the member countries.
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