World Bank Approves $225 Million Loan for Rajasthan Highway Upgrade

Udaipur, April 16, 2026 - The Board of Executive Directors of the World Bank on Monday (April 13) said it had approved a financing of $225 million (approximately Rs 2,000 crore) for the State highway modernisation project in Rajasthan. The project aims to improve the efficiency, resilience and safety of State highways in Rajasthan.

Under this initiative, around 800 kilometres of selected highways across the State will be upgraded and maintained.

A statement released by the World Bank said: "The Rajasthan Highway Modernisation Project (USD 225 million) will support the transformation of Rajasthan State Highway Authority into a modern, service-oriented highway agency, while upgrading and maintaining about 800 km of selected highway corridors, making them safer, climate-resilient and more reliable for commuters. The project will place strong emphasis on improving road safety management to reduce fatalities and improve safety across Rajasthan”.

According to the World Bank, this initiative will boost employment across industrial, mining, tourism and agricultural sectors. More than 30 lakh people are expected to benefit from improved transport connectivity. The project will also help transform the Rajasthan State Highway Authority into a more modern and service-oriented institution.

This project also marks the introduction of a Step-Up Loan for the first time in India. The loan of $225 million has been provided by the International Bank for Reconstruction and Development, with a maturity period of 35 years, including a Step-Up loan feature and a grace period of five years.

With Media Inputs

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