India: Rural Connectivity Investment Program (Facility Concept)

Sovereign Project | 40423-013 Status: Approved


The investment program will construct to all-weather standard about 9,000 kilometers (km) of rural roads connecting around 4,200 habitations in Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. For the investments in physical infrastructure to be effective and sustainable, the investment program will also focus on improving institutional arrangements, business processes, and associated capacity building, especially in relation to design, operation, safeguards, finance, road safety, and asset management.

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Project Name Rural Connectivity Investment Program (Facility Concept)
Project Number 40423-013
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0069-IND: Rural Connectivity Investment Program (Facility Concept)
Ordinary capital resources US$ 800.00 million
TA 8110-IND: Institutional Development for Rural Roads Asset Management
Technical Assistance Special Fund US$ 1.00 million
TA: Institutional Development for Rural Roads Asset Management
Japan Fund for Poverty Reduction US$ 1.30 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The investment program will construct to all-weather standard about 9,000 kilometers (km) of rural roads connecting around 4,200 habitations in Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. For the investments in physical infrastructure to be effective and sustainable, the investment program will also focus on improving institutional arrangements, business processes, and associated capacity building, especially in relation to design, operation, safeguards, finance, road safety, and asset management.
Project Rationale and Linkage to Country/Regional Strategy

ADB's country partnership strategy (CPS) for India is closely aligned with the priorities of India's Eleventh Five Year Plan, 2007 2012. The CPS reconfirms continuing ADB assistance for development of rural roads, which are critical for rural development as they provide access to markets, health, education, and administrative services. Absence of all-weather road connectivity is a serious problem, making rural communities inaccessible for up to 90 days a year. Poor road infrastructure affects economic growth in rural areas, agricultural productivity, and employment, and has a strong link to poverty. The Government of India is addressing this problem through implementation of a nationwide rural road investment program the Prime Minister's Rural Roads Program (PMGSY) aimed at providing all-weather road connectivity to currently unconnected eligible habitations in India's rural areas. The investment program will support the government's objectives under the PMGSY.

Strategic context and policy framework. The specific contribution of the PMGSY to the achievement of country strategic development goals includes reducing poverty (faster and more inclusive growth), expanding and strengthening rural infrastructure to accelerate agricultural growth and the rural economy, creating jobs, and social development (improved education, health, and social indicators). The PMGSY is also very relevant to the pillars of the policy framework in the road sector, including sustainability (promoting longer-term road maintenance), road safety (mainstreaming road safety audits and community awareness), and seamless connectivity (as rural roads provide the last mile connectivity).

The PMGSY identified the investment program states among the 10 states with large rural populations that lack adequate coverage in terms of all-weather road connectivity. The poverty head count rates in these states are among the highest in India. The PMGSY started in 2000 and has thus far constructed 108,637 km of rural roads in the investment program states, connecting 39,721 habitations to a greater transportation network. Construction of an additional 32,158 km of roads is ongoing. According to the June 2011 program update, 85,690 km of roads to connect all remaining eligible habitations in the investment program states are yet to be constructed under the PMGSY.

The latest estimate for the remaining PMGSY financing requirement to achieve its goal by 2016 in the investment program states is about $7.95 billion, while available PMGSY funding for the same period is estimated to be around $5.04 billion. While exploring the possibilities for domestic borrowing to close the financial gap, the government has approached ADB to provide funding of $0.8 billion under the investment program to assist with the implementation of the PMGSY in the investment program states. The investment program is consistent with the strategic objective set out in the CPS, 2009 2012 and is included in ADB's country operations business plan, 2011 2013.

Apart from the need to provide all-weather road connectivity in India's rural areas, the investment program states need support in improving business procedures covering the whole life cycle of rural roads, and strengthening related capacities. Specifically, while the emphasis is shifting from construction to the operation and maintenance of the rural road network, the related capacities for rural road network management are lagging. There is also a mismatch between the extent of the rural road network (around 80% of the total road network) and supply of skills, as the training of civil engineers, technicians, and site supervisors is oriented towards high-category roads.

Impact Reduction in poverty and deprivation, and inclusive socioeconomic growth of the communities served by the investment program roads
Project Outcome
Description of Outcome Connectivity of selected rural communities in five investment program states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal to markets, district headquarters, and other centers of economic activity is improved and sustainable.
Progress Toward Outcome About 1,362 km length of roads constructed in 5 states.
Implementation Progress
Description of Project Outputs

1. Selected priority rural roads in five investment program states are constructed to all-weather standard

2. Quality of design of the investment program roads is improved.

3. Maintenance of the investment program roads is improved and sustained.

4. Road safety measures are incorporated into the life cycle of the investment program roads.

5. Qualification and skills of PMGSY engineers, technicians, site supervisors, PRI staff concerned, design consultants, and contractors in the investment program states are improved and maintained.

6. Facility is managed effectively.

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Construction of roads ongoing in Madhya Pradesh, Chhattisgarh, Odisha, Assam and West Bengal.

2. Fully complied with; designs follow standard DPR template.

3. The bids for the construction of pilot RRNMUs and RCTRCs in 5 states are on-going.

4. RSAs conducted during project preparation.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects

Category "B"

This investment program is classified as category B in accordance with ADB's Safeguard Policy Statement (2009). In line with the approved environmental assessment and review framework (EARF), state level Initial Environmental Examination (IEE) of all road subprojects under tranche I have been prepared. These are disclosed at the ADB website. As per the provisions of the EARF, environmental assessment of non-road subprojects will be conducted during project implementation. The IEE rates the scale of environment impacts from the physical interventions of the investment program as minor. The predicted environmental impacts are minimal, temporary and reversible as they are mainly related to the occupational health and safety and minor issues of dust, noise and water pollution which occur mostly during construction. Mitigation measures for all impacts have been developed and integrated into construction works through incorporation of a standard environmental management plan (EMP) in the bidding documents and provision of road specific EMPs with the detailed project reports.

Involuntary Resettlement

Category "C"

RCIP follows CPF (Community Participation Framework).

Indigenous Peoples

Category "C"

The social assessment of the sample subprojects identified the presence of scheduled tribes in all RCIP states, however, these groups are largely assimilated into the local population. The investment program will not have any differential impact on scheduled tribe population: they will receive similar benefits from the investment program as the non-scheduled tribe households, and impact on tribal and cultural identity will not be significant. To further mitigate the risks, CPF identifies special provisions for all scheduled tribe households ensuring that their living standards are not adversely affected as a result of land donation or in the event of any loss of non-land asset and impacts on their livelihoods.

Stakeholder Communication, Participation, and Consultation
During Project Design During the preparation stage, discussions, interviews, and small group meetings were conducted within the subproject-affected communities to ascertain their response to the investment program, their needs and demands, estimates of losses from their properties, and steps to mitigate them. Interviews and group meetings were held in groups comprising men, women, farmers, scheduled castes, scheduled tribes, and other marginalized classes to obtain a comprehensive perspective of the investment program in all the five states. These processes revealed that the communities unanimously support the investment program because of the socioeconomic benefits that will result from it to the communities.
During Project Implementation tbd
Business Opportunities
Consulting Services All consultants financed by the loans under the MFF will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time) and other arrangements for recruitment of national consultants acceptable to ADB. Prior ADB review for the recruitment process with quality- and cost-based selection with a quality cost ratio of 80:20 will be followed.
Procurement All procurement of goods and works financed wholly or in part by ADB will be in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Procurement of civil works for construction of RRNMU and RCTRC facilities will be based on the ADB standard bidding document for procurement of works (small contracts). For the road construction, the investment program states will be following the national competitive bidding procurement process with the use of the standard PMGSY bidding document (improved as needed in agreement with ADB) and electronic procurement (e-procurement).
Responsible ADB Officer Andri Heriawan
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Rural Development Department
Rural Development Department
Government of Odisha
Sanchivalaya Marg, Bhubaneswar India
Ministry of Rural Development
Krishi Bhawan
New Delhi 110001
Panchayat and Rural Development Department
Room No.317, DKS Bhavan(Mantralay),
Raipur India
Public Works Roads Department(Government of Assam)
Assam Sachivalaya, Dispur, Guwahati-6
Assam India
Panchayat and Rural Development Department
Department of Panchayats & Rural
Development, Jessop Building (1st Floor)
63 N.S. Road, Kolkata - 700001 India
National Rural Roads Development Agency
5th Floor, 15-NBCC Tower,
Bhikaji Cama Place,
New Delhi-110066 India
Panchayat and Rural Development Department
5th Floor, B-Wing, Paryawas Bhawan,
Concept Clearance 23 Nov 2010
Fact Finding 06 Dec 2011 to 19 Dec 2011
MRM 20 Mar 2012
Approval 12 Jul 2012
Last Review Mission -
Last PDS Update 27 Mar 2015

MFF Facility Concept 0069-IND

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,225.30 Cumulative Contract Awards
ADB 800.00 - 0.00 0.00 %
Counterpart 425.30 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

TA 8110-IND

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 1,300,000.00 0.00 0.00 0.00 0.00 2,300,000.00 - 0.00

Safeguard Documents

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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

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Related Publications

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