SDG 9: Industry, Innovation, and Infrastructure | SDG 10: Reduced Inequalities
Institutions: Ministry of Finance | Government of Maharashtra
The Asian Development Bank (ADB) has approved a $400 million results-based lending (RBL) program to enhance all-weather road connectivity across 34 districts in Maharashtra. The program specifically targets the economically lagging and climate-vulnerable Marathwada and Vidarbha regions to foster balanced and inclusive economic growth. The upgrades cover a significant network of nearly 350 kilometers (km) of state highways and 2,577 km of rural roads.
The improved network is expected to directly benefit over 1.7 million people, including residents of at least 80 villages and around 410 rural communities. The primary objective is to link rural communities to essential services such as markets, logistics hubs, healthcare, and education. Crucially, the program will build climate-resilient, low-carbon, safe, and inclusive road networks. It also includes strengthening road safety management through safer road designs and treatments, like school and village gateway improvements, and providing training to at least 120 engineers in road safety.
Policy Relevance: This investment is critical for addressing intra-regional disparities in Maharashtra by focusing on vulnerable areas, and its results-based modality sets a strong precedent for greater accountability and alignment of public works with climate resilience and road safety policy goals.
What is βresults-based lendingβ (RBL) in the context of ADB loans? Results-based lending (RBL) is an ADB financing modality where funds are released not against direct expenditures, but as specific, predetermined targets, milestones, and results are achieved by the implementing agencies. This approach encourages greater accountability, allows implementing agencies to pool resources, and aligns development assistance efforts toward common, coordinated goals, ensuring on-the-ground impact.
Relevant Question for Policy Stakeholders: Beyond infrastructure completion, what robust monitoring and evaluation framework will the state government implement to ensure the $400 million RBL program measurably reduces socio-economic disparities and achieves climate resilience targets in Marathwada and Vidarbha?
Follow the full news here: ADB Approves $400 Million Loan to Upgrade Road Connectivity in Maharashtra, India