World Bank Approves USD 225 Million Loan for Rajasthan Highway Modernization Project
On April 13, 2026, the World Bank(WB’s) Board of Executive Directors approved a USD 225 million (approximately Rs. 2,080 crore) loan for the Rajasthan Highway Modernisation Project to enhance the efficiency, resilience, and safety of state highways.
About Rajasthan Highway Modernisation Project:
Loan Terms: The USD 225 million loan from the International Bank for Reconstruction and Development (IBRD) has a 35-year maturity, includes India’s first Step-Up Loan (SuL), and offers a 5-year grace period.
SuL Mechanism: The SuL eases fiscal pressure during the early high-risk phase, with higher repayments later once the project stabilises and becomes ready for market refinancing.
Scope: The Rajasthan Highway Modernization Project will upgrade and maintain about 800 kilometer(km) of state highways while transforming the Rajasthan State Highway Authority(RSHA) into a modern, service-oriented agency, enhancing safety, reliability, and climate resilience.