India: Upgradation of Rural Roads under MMGSY (Mukhaya Mantri Gram Sadak Yogna) (AIIB-001120)

Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Republic of India, Ms. Tulsipura Rajkumari
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 714.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Nov 10, 2026

Disclosed by Bank Jul 1, 2026


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank's website, the proposed project aims to improve the quality, capacity, safety, and climate resilience of strategic rural roads, and to strengthen rural road asset management in Maharashtra. The Project will have following three components.

Component A will finance the upgrading of about 3,500 km of strategic rural roads, or more where feasible within the available project funds. Works will generally include widening to intermediate-lane standards with a 5.5 m carriageway and 1.5 m shoulders on either side, use of durable and climate-resilient pavement technologies such as short-panel concrete and other appropriate solutions, geometric improvements, drainage and cross-drainage enhancements, road safety measures, wayside facilities, and rehabilitation or construction of bridges and culverts. Civil works contracts will include defect liability and maintenance provisions of five years for bituminous roads and ten years for concrete roads.

Component B will support pilot interventions to demonstrate improved rural road planning, design, construction, maintenance, and asset management practices. This will include construction of about 200 km of model rural roads incorporating best practices in engineering design, road safety, climate resilience, and construction quality. It will also pilot the implementation of civil works and maintenance plans generated through the Road Asset Management System under Component C in a selected subdistrict, using area-based or other suitable contracting approaches to demonstrate efficient prioritization and allocation of maintenance resources.

Component C will provide technical assistance to strengthen management of the rural road sector in Maharashtra. It will support the development and operationalization of a GIS-based Road Asset Management System (RAMS), preparation of an asset management strategy and plan, development of a rural road master plan aligned with the Viksit Maharashtra 2047 vision, and establishment of a Human Resources Professional Development Strategy for MRRDA staff. The component will also finance technical notes and guidance on engineering and related areas, capacity building, exposure to good international practices, and refurbishment of training, office, IT, and laboratory facilities needed to support project implementation and long-term sector management. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Total project cost: USD714.00 million Proposed AIIB Financing: USD 500.00 million 


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Team Leader: Pawan Karki 

Title: Senior Investment Officer 

Email: pawan.karki@aiib.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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