The Asian Development Bank (ADB) announced on Monday that it has granted approval for two loans, each amounting to $250 million. One of these loans will fund the construction of an 82-kilometer Delhi-Meerut Regional Rapid Transit System (RRTS) corridor, while the other will provide continued support to industrial corridor development, aimed at enhancing manufacturing competitiveness, strengthening national supply chains, fostering links with regional and global value chains, and generating more and improved employment opportunities.

In 2020, ADB had previously approved a $1,049 million Multi-tranche Financing Facility (MFF) to facilitate the RRTS project, which is the first of three vital rail corridors outlined in the NCR Regional Plan 2021. The primary objective is to connect Delhi with other cities in neighboring states. According to a statement from the finance ministry, the RRTS will include multi-modal hubs to facilitate smooth transfers between different modes of transportation. The first tranche of the ADB loan amounts to $500 million, with an additional $500 million co-financed by the Asian Infrastructure Investment Bank (AIIB).

Following the signing of the loan agreement, Juhi Mukherjee, Joint Secretary at the Finance Ministry, expressed that this investment project is expected to enhance urban mobility through the RRTS and also generate positive economic impacts, particularly benefiting women and individuals with disabilities.

Furthermore, the loan allocated for Subprogram 2 will play a crucial role in integrating industrial corridors with transportation, logistics, and urban infrastructure, in line with the government’s Prime Minister Gati Shakti platform. This financial injection builds upon the $250 million Subprogram 1 loan, previously approved by ADB in October 2021. The earlier loan facilitated the strengthening of policy frameworks for the Government of India’s National Industrial Corridor Development Programme (NICDP) and contributed to the development of 11 industrial corridors.

The program is anticipated to create job opportunities in the manufacturing sector, spanning various domains such as agribusiness, automotive, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles. It is expected to play a pivotal role in reducing poverty in the corridor states.

Also Read | India and ADB Sign $175 Million Loan Agreement to enhance Madhya Pradesh Road Connectivity

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