The investment program will improve rural connectivity in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal (the investment program states), facilitating safer and more efficient access to livelihood and socioeconomic opportunities for the rural communities. It will construct all-weather rural roads for the unconnected habitations and upgrade rural roads linking to the investment program states' district centers for an aggregate length of 12,000 kilometers (km). For the investment in physical infrastructure to be effective and sustainable, the investment program will strengthen the institutional capacity of the implementing agencies on road safety and road maintenance.
|Project Name||Second Rural Connectivity Investment Program|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
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 improve rural connectivity in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal (the investment program states), facilitating safer and more efficient access to livelihood and socioeconomic opportunities for the rural communities. It will construct all-weather rural roads for the unconnected habitations and upgrade rural roads linking to the investment program states' district centers for an aggregate length of 12,000 kilometers (km). For the investment in physical infrastructure to be effective and sustainable, the investment program will strengthen the institutional capacity of the implementing agencies on road safety and road maintenance.|
|Project Rationale and Linkage to Country/Regional Strategy||
In India, rural roads comprise 80% of the overall road network, connecting rural habitations with major district roads, state roads, and national highways. The magnitude of the rural road network and its contribution in delivering inclusive economic growth in the country's rural area require continued engagement in the sector. The requirement of all-weather rural roads is essential for the last mile connectivity to enhance access to markets, health centers, education facilities, and other socioeconomic opportunities.
The Government of India seeks to improve rural connectivity through the Prime Minister's Rural Road Program or Pradhan Mantri Gram Sadak Yojana (PMGSY). It is a national flagship program, and is included in India's Three Year Action Agenda for FY2018-FY2020. The first phase of the PMGSY (PMGSY-I) started in 2000 to provide basic connectivity for about 133,900 rural habitations in all states by constructing rural roads to all-weather standards (531,500 km). So far in 2017, 513,000 km of rural roads (96.5%) have been built. Once the states have substantially completed PMGSY-I, they will proceed to the second phase of the PMGSY (PMGSY-II), which plans to upgrade an additional 50,000 km to improve access to district centers and rural hubs.
Since 2003, ADB has provided assistance to PMGSY-I in five states-Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal-through loans totaling $1.15 billion, and constructed over 22,600 km of all-weather rural roads. These were completed satisfactorily and rated successful or highly successful. In 2012, the first Rural Connectivity Investment Program (RCIP) using the MFF modality was approved for $800 million to provide additional coverage under PMGSY-I for about 9,000 km of all-weather rural roads in the investment program states. The first and the second tranches were substantially completed, and the third tranche is ongoing. The first RCIP also aims to strengthen institutional capacity to manage rural roads in the investment program states. This entails establishing rural road network management units (RRNMUs) for asset management and operation of the rural road networks, and rural connectivity training and research centers (RCTRCs) for staff training, knowledge management, and research. Under the first RCIP, the implementing agencies have successfully established one pilot RRNMU and one RCTRC in each investment program state, equipped with operation manuals and procedures prepared under ADB's technical assistance. Using the institutional set-up of the pilot RRNMU as a model, the implementing agencies are currently establishing another 25 RRNMUs to manage rural roads in the entire investment program states.
The proposed Second Rural Connectivity Investment Program will encompass both PMGSY-I and PMGSY-II to improve about 12,000 km of rural roads in the investment program states. It will also continue capacity development and build on the achievement of the first RCIP by strengthening the operations of the 25 RRNMUs and RCTRCs to sustain rural road maintenance and safety as required by the PMGSY guidelines. The investment program will allow continued assistance to the PMGSY and support the government's long-term goal for rural development. It will further strengthen the government's initiative toward achieving more inclusive economic growth and is also closely aligned with ADB's country partnership strategy, 2018-2022 for India.
|Impact||Mobility and accessibility in India improved.|
|Description of Outcome||Rural connectivity in the investment program states improved.|
|Progress Toward Outcome|
|Description of Project Outputs||
Rural roads in the investment program states improved.
Institutional capacity of PMGSY implementing agencies strengthened.
Operation and maintenance of PMGSY roads sustained.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Assam, Chhattisgarh, Madhya Pradesh, Odisha, West Bengal|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The investment program is classified as category B in accordance with the ADB Safeguard Policy Statement (SPS), 2009. The project scope includes reconstruction or upgrading of rural roads to all-weather roads, none of which will be located inside or near a protected area or environmentally sensitive area. Transect walks have been conducted and environment checklists documenting environmental baseline data prepared for all roads under tranche Tranche 1. Based on a 10% sample check of the checklists and site visits, state-level Initial Environment Examination (IEE) reports have been prepared for the investment program states. An Environmental Assessment and Review Framework (EARF) has been prepared for the investment program to guide environment safeguards compliance during preparation and monitoring of subsequent tranches.|
|Involuntary Resettlement||The investment program is classified as category C for resettlement impacts. Road improvements will take place in existing rights-of-way and impacts are marginal, mostly concerning minor widening and only in a few cases realignment, which require narrow strips of land to be made available. A voluntary land donation process was used under the PMGSY and other rural development schemes across India, and has proved effective. It was refined with the guidelines of the state-specific CPFs to comply with ADB's Safeguard Policy Statement (2009). The CPFs are disclosed on the ADB website.|
|Indigenous Peoples||The investment program is classified as category C for impacts on indigenous peoples in accordance with the Safeguard Policy Statement. The census survey identified scheduled tribes and castes along program roads in all five states, but since the program involves minor upgrades to existing roads, it will not lead to further impact on any of these people. Moreover, the CPFs call for proactive measures to link any affected family categorized as vulnerable, which includes scheduled tribes and castes, to the national and state-sponsored poverty alleviation and livelihood enhancement schemes.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The program uses a participatory, pro-poor approach. The design phase follows the approach outlined in the state-specific community participatory framework (CPF), prepared during the approval of the MFF and disclosed on the ADB website. The CPFs include a comprehensive consultation process, with the requirement of conducting transect walks with community residents along each program road, with the objective of selecting the alignment that best suits the community's needs and minimizes adverse social impacts. Another key objective is to identify affected households and, among these, vulnerable individuals, who will then be linked with state or national government-sponsored poverty alleviation schemes. The findings and discussion resulting from transect walks are documented by the project implementation consultant (PIC) and have proven effective in improving road designs or screening for roads that do not fulfill the CPF criteria.|
|During Project Implementation||During the implementation stage, discussions, interviews, and small group meetings will be conducted within the project-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 will be 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.|
|Consulting Services||In total the PPTA will require 37 person-months of consulting services (6 international and 31 national). ADB has engaged all individual consultants in accordance with its Guidelines on the Use of Consultants (2013, as amended from time to time). Disbursement under the TA will be carried out in accordance with ADB''s Technical Assistance Disbursement Handbook (2010, as amended from time to time). The PPTA is in progress.|
|Procurement||Procurement of equipment will follow ADB''s Procurement Guidelines (2015, as amended from time to time). The equipment will be handed over to the government upon TA completion.|
|Responsible ADB Officer||Dodla, Shiva Raju|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
|Concept Clearance||15 Dec 2014|
|Fact Finding||19 Jun 2017 to 30 Jun 2017|
|MRM||29 Aug 2017|
|Approval||29 Nov 2017|
|Last Review Mission||-|
|Last PDS Update||01 Dec 2017|
MFF Facility Concept 0104-IND
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||1,225.26||Cumulative Contract Awards|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Nov 2017||23 Mar 2018||23 Mar 2018||31 Dec 2021||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|500,000.00||0.00||0.00||0.00||0.00||0.00||500,000.00||29 Nov 2017||217,451.14|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
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 See also: Independent Evaluation
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ADB, India Sign $250 Million Loan to Improve Rural Connectivity in 5 StatesADB and India today signed a $250 million loan to finance the construction of 6,254 kilometers (km) of all-weather rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal.
ADB Approves $500 Million Facility to Improve Rural Roads in 5 Indian StatesADB's Board of Directors has approved a multitranche financing facility (MFF) for the Second Rural Connectivity Investment Program totaling $500 million to improve rural roads in five Indian states.
|Tender Title||Type||Status||Posting Date||Deadline|
|C2 - Financial Management Expert||Firm - Consulting||Closed||10 Nov 2020||06 Dec 2020|
|Road Maintenance Specialist||Individual - Consulting||Closed||11 Aug 2018||24 Aug 2018|
|Consultancy Services for Capacitiy Building in Rural Roads Development||Firm - Consulting||Closed||19 Apr 2018||18 May 2018|
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Capacity Development||Technical Assistance 9430||16 Nov 2018||Finnish Overseas Consultants (FinnOC) Ltd.(FINLAND) in association with Theme Engineering Services Pvt. Ltd.(INDIA)||Metsarinne 7 B, Kerava Kerava, Finland 0 nd||Ministry of Rural Development||Consulting Services||226,400.00||—|
|Title||Document Type||Document Date|
|Second Rural Connectivity Investment Program: Procurement Plan||Procurement Plans||Sep 2017|