ADB Clears USD 400 Million Loan To Strengthen Maharashtra’s Road Network And Rural Connectivity

November 26, 2025: The Asian Development Bank (ADB) has approved a $400 million loan under a results-based lending programme aimed at significantly improving Maharashtra’s road infrastructure. The initiative focuses on enhancing connectivity across 34 districts, with a strong emphasis on the climate-vulnerable and economically underdeveloped Marathwada and Vidarbha regions. The upgrades are expected to benefit nearly 1.7 million people by linking rural communities more efficiently to markets, logistics hubs, schools, hospitals, and other essential services.

According to ADB’s statement, the project will modernise close to 350 km of state highways and about 2,577 km of rural roads, improving accessibility for residents of at least 80 villages and around 410 rural communities. The bank noted that these improved roads will directly support livelihoods, reduce travel time, and strengthen last-mile connectivity for agricultural producers, students, and healthcare seekers.

Highlighting the broader vision behind the programme, ADB Country Director for India Mio Oka said, “The program seeks to foster balanced and inclusive economic growth in Maharashtra by improving road connectivity to rural villages, post-harvest centers, and essential social services.” She added that the results-based lending approach enables implementing agencies to “pool resources and align efforts toward shared results, ensuring coordinated development assistance and common targets.”

The initiative aims not only to upgrade physical infrastructure but also to improve the state’s ability to withstand climate risks by ensuring that the new and rehabilitated roads follow climate-resilient engineering standards. Improved connectivity is expected to stimulate regional trade, support the movement of agricultural goods, and increase economic activity in remote pockets of the state.

By investing in critical transport links, the ADB-funded programme is positioned to play a key role in driving more equitable development across Maharashtra, bridging infrastructure gaps and improving everyday mobility for millions.

Source: Financial Express

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