Government, World Bank sign agreement worth $500m for PMGSY rural roads project

The Union Government on May 31, 2018 signed a $500 million loan agreement with the World Bank to provide additional financing for the Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project.

The project, implemented by the Union Rural Development ministry, aims to build 7,000 km of climate resilient roads, out of which 3,500 km will be constructed using green technologies.

The Loan agreement for the project was signed by Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Junaid Ahmad, Country Director, World Bank India, on behalf of the World Bank in the presence of Alka Upadhyaya, Joint Secretary (RC), Ministry of Rural Development.


The PMGSY has over the years brought about a paradigm shift in the way rural roads are mapped, designed, monitored and built, involving communities especially women.

The additional finance will help bring a new shift in construction technology using green and low carbon designs and climate resilient construction techniques.

It will enable the rural communities to have access to better economic opportunities and social services.

Role of World Bank in PMGSY

The World Bank has supported PMGSY since its inception in 2004.

So far it has invested over $1.8 billion in loans and credits mostly in the economically weaker and hill states across North India - Bihar, Himachal Pradesh, Jharkhand, Meghalaya, Rajasthan, Uttarakhand, and Uttar Pradesh.

It has built and improved about 35,000 km of rural roads and benefited about eight million people with access to all-weather roads.


Under this additional financing, the PMGSY and the Bank’s involvement will emphasize on managing the rural road network through green and climate-resilient construction using green, low-carbon designs and new technologies, far beyond merely funding civil works.

It will be done through the following measures:

Climate vulnerability assessment during the design process to identify the critical locations affected by floods, water-logging, cloudbursts, storms, landslides, poor drainage, excessive erosion, high rainfall and high temperatures.

Special treatment for flood-affected areas through adequate waterways and submersible roads to allow easy passage of water, use of concrete block pavements and improved drainage.

Use of environmentally optimized road designs and new technologies that use local and marginal materials and industrial by-products such as sand, local soils, fly ash, brick kiln wastes and other similar materials in place of crushed rocks.

Innovative bridges and culverts through use of pre-fabricated/pre-cast units for roads and bridges having better ability to withstand earthquakes and water forces such as continuous beams, bearing free construction and river training works.

Use of hill cutting material in hill roads ensuring its productive use and resolving its disposal problem, use of bio-engineering measures, improved drainage and other treatments for landslide-prone areas and providing adequate slope protection.

Besides, the additional financing will also fill the gender gap by creating employment opportunities for women in construction and maintenance. The earlier project had piloted community-based maintenance contracts through women self-help groups (SHGs) for routine maintenance of 200 km of PMGSY roads in Uttarakhand, Meghalaya and Himachal Pradesh. SHG-run maintenance contracts will now be extended to about 500 km of roads across 5 states.

Challenges in PMGSY

The adequate maintenance of the existing 4.6 million km of the road network is emerging as a major challenge.

Many parts of the existing road network are either vulnerable to or have already suffered damage from climate-induced events such as floods, high rainfall, sudden cloudbursts and landslides.

Hence, it is even more critical to ensure that the infrastructure is built and maintained to withstand climatic changes. The only way to make this possible is to integrate climate resilient construction in the strategy and planning of rural roads.


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