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Gujarat Rural Road Program

India India
Area Of Operation
Transport Infrastructure Transport Infrastructure

Quick Facts

Financing Approval Date
28 November 2023
Current Limit of NDB Financing
USD 500 million
The Republic of India
Project Entity
Government of Gujarat

More About This Project

Certain habitations in the State of Gujarat are still not connected to the Road Network through all weather road and rely on earthen road for transport. These existing roads require longer travel times and increase wear and tear of motorized vehicles. Also, they are vulnerable to weather events – during the rainy season the roads deteriorate rapidly, disrupting transport services and access to health centers and markets when it is most needed. After completion of the project, approx. 2800 habitations will be further connected to the State Road Network through all weather roads.

The Program combines both investment and knowledge support to: (i) construct / improve about 13,500 km of rural roads and about 650 bridges / structures to enhance road connectivity and network efficiency; and (ii) introduce innovations, new technologies, climate resilient and safe road design, and strengthen institutional effectiveness of Roads and Buildings Department of Government of Gujarat.

The Program will promote socio-economic development of rural areas of the State through enhanced rural connectivity and improved access to markets, health, and education centers, thereby contributing to development of transport infrastructure sector to complement the overall economic growth of the State.

The Program will contribute towards achieving the Sustainable Development Goal (SDG) 9 (Industry, Innovation and Infrastructure), in particular target 9.1 (Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all).In addition, the Program will contribute to other SDGs including: SDG1: No Poverty (rural roads have been found to have significant impact on poverty reduction with increased rural incomes and jobs) and SDG10: Reduced Inequalities (through enhanced rural population income and living conditions).

The Program is estimated to be implemented till March 2027. Government of Gujarat will be the Program Entity and will implement the Program through its Roads and Buildings Department.

The Program has been classified as Category A in accordance with the NDB Environment and Social Framework (ESF).

The main environmental and social (E&S) impacts of the Program are related to critical habitats due to activities in protected areas (wildlife sanctuaries), indigenous peoples as some roads will cross scheduled tribes areas, removal of roadside trees and vegetation and civil works-related impacts during the construction stage.

By implementing the Environmental and Social Management Framework, Tribal Communities Planning Framework and Environmental and Social Impact Management Plan prepared for the Program, and adhering to the applicable requirements of the country system, the Program’s E&S impacts and risks will be effectively avoided or mitigated in line with the NDB ESF.


The Project will be financed through loan from NDB and counterpart funding from Government of Gujarat.
Source of Fund Amount
USD 500 million
Government of Gujarat INR 41.5 billion
NDB Borrower Project Entity
Public Sector Department

Garvit Sah

Ministry of Finance of Government of India

Dr. Prasanna V. Salian

Government of Gujarat

Y.M. Chavda