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Madhya Pradesh Major District Roads Project

India India
Area Of Operation
Transport Infrastructure Transport Infrastructure

Quick Facts

Financing Approval Date
22 November 2016
Current Limit of NDB Financing 
USD 327.73 million
The Republic of India
Project Entity
MP Road Development Corporation Ltd.

More About This Project

Madhya Pradesh is the second largest state in India, yet it remains underdeveloped with per capita income about 34% lower than the national average. Around 72% of the MP’s population lives in rural areas. As a land-locked state, Madhya Pradesh is primarily reliant on the road sector for the economic activities. About 90% of the state highways were either standard single lane or even narrower than that. The lack of adequate transport infrastructure was the major impediment to accelerate the economic development of the state. In this context, the Project was designed to improve Madhya Pradesh’s connectivity and boost the local economy. This was also in alignment with the NDB’s objective to promote infrastructure and sustainable development.

The Project supported the upgradation of about 1543 km of Major District Roads to intermediate lane width, with 5.5m wide carriageway, all-weather access, proper signage, pedestrian crossings and other road safety features.

The objective of the Project was to improve transport connectivity to the interior regions of Madhya Pradesh with the district headquarters and state road network and the resultant increase to economic activity in the rural hinterland.

The project was implemented in over 5 years. The Government of Madhya Pradesh, through MP Road Development Corporation Limited, was the Project Entity for the project. Contractors for the project were selected through a competitive and transparent bidding process.

The project was categorized as Category B in accordance with the NDB Environment and Social Framework. NDB’s due diligence on environmental and social aspects found that no land acquisition or involuntary resettlement was required as the roads were construction within the existing right of way. No forest diversion occurred in the project.

The total cost of the project was around USD 463.55 million. The NDB financed USD 327.73 million, accounting for about 71% of the total cost. The rest was financed by the Government of Madhya Pradesh.
Source of Fund Amount (USD million)
New Development Bank
Government of Madhya Pradesh 135.82
NDB Borrower Project Entity
Public Sector Department

Deepanshu Sapra

Department of Economic Affairs, Ministry of Finance, Government of India

Prasanna V. Salian

Government of Madhya Pradesh

Sukhveer Singh