Financial Impact Due to Rehabilitation and Resettlement Policy of Asian Development Bank in Implementation of Highway Projects under NCRPB Scheme

Abstract

Road Infrastructure is considered as the backbone of nation’s development. India’s road network is still in developing stage. There is a need of robust investment in national highways and state highways. Due to lack in investment inflows only 10690 Km out of the target of 50621 Km have been achieved by Govt. of India. Financial institutions like World Bank, Asian Development Bank, provide finance in form of infrastructure loans. ADB has been providing financial loan to the tune of 75% of total project cost, especially in NCR region for improving the overall design, delivery, end development, effectiveness for improvement of road projects. NCRPB is a unique example of inter-state regional development planning for a region having a total area of over 33500 sq. Km in states of UP, Haryana, Rajasthan and National capital territory of Delhi. NCRPB helps in funding of projects in NCR area and Asian Development Bank has been approached for fund requirement to a tune of 1000 crores of line of credit. For these projects, all terms and conditions as laid by ADB have to be followed including Rehabilitation and Resettlement policy. The objective of this study is to discuss various problems faced in implementation of these road development projects funded by ADB due to R&R policies. The study concluded with the financial impact due to R&R policy of ADB in implementation of highway projects under NCRPB scheme which further resulted in cancellation of one of highway projects.