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Bihar Rural Roads Project (Phase 2)

India India
Area Of Operation
Transport Infrastructure Transport Infrastructure

Quick Facts

Financing Approval Date
28 November 2023
Current Limit of NDB Financing
USD 638.12 million
The Republic of India
Project Entity
Government of Bihar (GoB)

More About This Project

Bihar is a state in the eastern part of India. It is the third most populous state in the country with around 90% of its’ population living in rural areas. Out of the total mapped road network in Bihar, 83% are rural roads that provide inter‐village connectivity and act as a feeder network to roads of higher categories such as district road, state highway or national highway.

Around 89% of the total rural habitations of Bihar have access to roads through various central and state level rural road development plans. To further increase access to road network, the GoB has formulated the Mukhya Mantri Gram Sampark Yojana (MMGSY)-Awsesh scheme, which constitutes the Project, to provide connectivity to identified habitations, with a population of more than 100 without direct access to the nearest road.

The Project will support construction of more than 8,000 km length of rural roads under the MMGSY-Awsesh. The Project will include innovative components to improve project and asset management as well as quality assurance systems in Bihar for the Rural Works Department, which operates the largest road network in state.

The Project aims to provide first-time road connectivity to more than 7,000 rural habitations, benefiting 2.25 million rural population. This road network coverage will increase to 95% of the total rural habitations in state.

The Project will be implemented in three phases and planned to be completed by the end of first quarter of 2031. The GoB through RWD will be responsible for Project’s overall planning, execution and achievement of desired results.

The project management unit function for the Project will be carried out by the RWD’s Bihar Rural Roads Development Agency.

NDB loan will finance procurement of civil works, goods and services contracts for the Project, following procurement and contract management procedures as developed by RWD for national level and/or state-level programs, in compliance with the country system procurement laws and regulations, as well as with the core principles of NDB Procurement Policy.

The Project has been categorized as Category B in accordance with the NDB Environment and Social Framework (ESF). The main environmental and social impacts include (i) land and habitat disturbance due to quarrying and procurement of construction materials, (ii) construction induced impacts such as dust, noise, vibration, and waste generation, (iii) occupational health and safety of workers, and (iv) disruption of traffic and public utilities during construction.

These impacts will be addressed and mitigated by adherence to country system requirements and management plans developed for the Project, including the Environmental and Social Management Framework and Environmental and Social Impact Management Plan, to ensure compliance with country systems and ESF.

The Project will be financed through the loan from NDB and counterpart funds from GoB.
Source of Fund Amount
USD 638.12 million
GoB INR 38.27 billion
NDB Borrower Project Entity
Public Sector Department 

Mukund Kumar

The Republic of India 

Prasanna V Salian

Government of Bihar, through Rural Works Department 

Krishna Prasad