India gets loan for rural development

MANILA:  India is to get two Asian Development Bank loans totalling $620 million to improve rural roads and basic urban services in two states, the Philippines-based lender said on Friday.

The first loan, for $320 million , will help rebuild 1,800 kilometers of road in Madhya Pradesh, an ADB statement said. 

The bank also approved up to four loans totalling $300 million, to be disbursed over the next eight years, to improve basic urban services in Jammu and Kashmir.   

"The program will expand water supply, sanitation, waste management, urban transport and other municipal functions in Jammu, Srinagar and other vital towns and commercial centers of the state of Jammu and Kashmir," said ADB specialist Alex Jorgensen. 

Both the Madhya Pradesh and Jammu and Kashmir loans carry market rates, with the former payable over 25 years including a five-year grace period. The latter facility's payment terms were not made public.