India signs 82 million loan deal with World Bank for infrastructure

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The Government of India, the Government of Himachal Pradesh and the World Bank have entered into a $82 million pact for the Himachal Pradesh State Roads Transformation Project which will strengthen transport and safety institutions in Himachal Pradesh road network.

The Himachal Pradesh State Roads Transformation Project will finance initiatives to build climate and disaster-resilient roads; improve road safety along tourism corridors in Himachal; enhance logistics along fruit belts; and support the government’s initiative to create a corporate entity responsible for ensuring well-performing roads. A third of the maintenance contracts under the project will be awarded to women-led Self-Help Groups (SHGs).

Shri Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, Government of India said that the economic growth of any region is closely linked to its road infrastructure. The mountainous state of Himachal Pradesh with its rich horticulture and tourism potential requires well-constructed, well connected, climate resilient and safe roads. This project will help the state develop reliable, resilient and safe roads which is crucial for the economic development of the state.

A mountainous state in north India, Himachal Pradesh is richly endowed with natural resources but prone to landslides and flash floods that affect road connectivity. Cloud bursts, river flows and flooding causing landslides and erosion of embankments, etc. are commonplace. The project aims to extend protection against these natural disasters. The project will implement engineering solutions that are plant and natural based as well as control vehicular emission to address climate risks.

Tesfamichael Mitiku, Senior Transport Engineer and World Bank’s Task Team Leader for the project, said that a well-performing road infrastructure that helps in creating an efficient logistics system will go a long way in supporting smallholder farmers, small and medium enterprises and manufacturing industries deliver products just-in-time to wholesale and terminal markets at a lower cost. Reorganizing Himachal Pradesh Road & Other Infrastructure Development Corporation (HPRIDC) and HP Motor Vehicle Administration as corporate entities will also support greater transparency and accountability in promoting innovative development solutions.

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