The Indian government, the Asian Development Bank and the India Infrastructure Finance Company Ltd have signed a USD 250 million (INR 1,125 crore) loan agreement for Tranche-2 of the ongoing Second India Infrastructure Project Financing Facility to fund sub projects to expand the road network in Gujarat, Maharashtra and Rajasthan by a further 906 kilometers and to provide additional funding for the Gujarat power project.

The second tranche loan is part of the USD 700 million (INR 3,150 crore) multi tranche financing facility approved in 2009 to help IIFCL fund infrastructure development projects in public-private partnership mode. The first tranche of USD 210 million (INR 945 crore) was allocated to finance three sub projects for improving roads & highways in Madhya Pradesh, Punjab, Haryana, Himachal Pradesh, Delhi.

ADB previously provided USD 500 million loan to IIFCL for the First Infrastructure Project Financing Facility in 2007, with about USD 381 million disbursed for 27 road subprojects and USD 89 million for two international airport sub-projects in Delhi and Mumbai.
(Sourced from PM News Bureau)