India signed a loan agreement with the Asian Infrastructure Investment Bank (AIIB) on Friday for providing a loan of 329 million US dollars to improve rural road connectivity in the western state of Gujarat, according to a statement on the website of Indian Ministry of Finance.
The objective of the project is to improve the rural road connectivity and accessibility by providing all-weather road connectivity to 1,060 villages in all the 33 districts in the state, the statement said, noting about eight million people will benefit from the project.
The project will directly contribute to the economic development of the State of Gujarat as well as the country by improving the mobility of the rural population, said D.J. Pandian, Vice President and Chief Investment Officer of AIIB, according to a statement on AIIB's website.
Integrating isolated and impoverished rural populations with outside world and improving their access to critical social services have a positive impact on the economic and social outcomes of local communities, the statement said.