New Delhi (BiharTimes)  The Japan International Cooperation Agency (JICA)  signed a loan agreement with the Government of India to provide 21,426 million JPY(approx Rs 1267 crore) of Japanese Official Development Assistance (ODA) loan for the Bihar National Highway Improvement Project (Phase II). The agreement was signed by Mr. Shinya Ejima, Chief Representative, JICA India Office and Mr. Rajesh Khullar, Joint Secretary (Bilateral Cooperation), Ministry of Finance, Government of India in New Delhi. The loan has been provided for upgradation of National Highway 82 connecting Gaya to Biharsharif in Bihar covering 92.93 km. The loan at concessional rate of 1.4% carries a repayment period of 30 years with grace period of 10 years.

Under the loan agreement, funds would be used for widening of the highway into four lanes and for constructing 3 bypasses circumventing congested areas. The project shall be executed by Ministry of Road Transport and Highways (MoRTH) through Bihar State Road Development Corporation (BSRDC). The project is expected to be completed by February 2019.

It is envisaged that the project improving the trunk highway in South Bihar shall contribute to economic development and poverty alleviation of one of the poorest states in India showing remarkable economic growth during recent years, and the project can also promote tourism by improving the connectivity to various Buddhist historical sites in Bihar. The highway route runs through Rajgir and shall improve connectivity to the new Nalanda university which is being built near the ruins of the ancient academic institution.

The loan agreement of the first phase of Bihar National Highway Improvement Project was signed on February 22, 2013 to upgrade National Highway 83 connecting Patna to Gaya and Dobhi, thereby connecting the state capital and NH2 (Golden Quadrilateral) by the shortest distance. The two phases of the Bihar National Highway Improvement Project shall improve the intra-state and inter-state and the accessibility for the people of Bihar.

Although Bihar is also one of the most impoverished states of India, where 53.5 percent of the State’s population lives below the poverty line (2010), it has achieved remarkable economic growth in recent years. With the economic development and increase in population, the number of vehicles in Bihar increased from 1.02 million to 2.67 million from fiscal year 2002/03 to 2011/12. However, the road length per 100,000 people was only 125.85 km, in comparison to an average of 387.57 km for the entire India. Hence, the road network must be improved quickly to meet the rapidly growing demand for road transportation and promote economic growth in Bihar.