New Delhi: The World Bank on Monday said it has approved a USD 225 million loan for the highway modernisation project in Rajasthan, which will benefit more than 3 million people, improve connectivity and create jobs.

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The World Bank’s Board of Executive Directors has approved financing for a new project to improve highway efficiency, resilience, and safety across the Indian state of Rajasthan. The project will benefit more than 3 million people and improve connectivity to stimulate job creation in economic corridors across the agriculture, industrial, mining, and tourism sectors.

Rajasthan is one of India's largest states and serves as a critical gateway connecting 40 percent of India's markets. Although the state has had an annual growth rate of 11 percent between 2015-16 and 2023-24, the state’s road infrastructure has not kept pace, the World Bank said in a statement.

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"The Rajasthan Highway Modernisation Project (USD 225 million) will support the transformation of Rajasthan State Highway Authority into a modern, service-oriented highway agency, while upgrading and maintaining about 800 km of selected highway corridors, making them safer, climate-resilient and more reliable for commuters. The project will place strong emphasis on improving road safety management to reduce fatalities and improve safety across Rajasthan," it said.

The USD 225 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 35 years, with a step-up loan feature, including a grace period of 5 years, it added.

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