Which agency is funding upgradation of 801 km of 11 state highways in Rajasthan State Highways Development Program-II project ?
- (1)NABARD
- (2)National Highway Authority of India
- (3)World Bank
- (4)Asian Development Bank
Answer
Why
Correct — option (3), World Bank.
Rajasthan's Economic Review 2022-23 describes the Rajasthan State Highways Development Program-II Project (RSHDP-II) twice, in its roads section and in its section on externally aided projects. Both say: "This project is funded by the World Bank."
The project covers up-gradation of 801 km of state highways to two-lane or intermediate-lane standards. It also covers operationalising the Rajasthan State Highway Authority, institutional strengthening, road safety and project management support.
The Review says 8 packages covering 11 highways of 801 km were proposed and all were awarded; 3 projects of 328 km were complete and 6 projects of 365 km were in progress. So the lender is the World Bank.
The idea to remember: RSHDP-II (11 highways, 801 km) is the World Bank project; the Rajasthan State Highway Investment Programme projects are ADB-funded.
Why the others are wrong
- (1)NABARD — NABARD does appear in the Review's roads section, as one of several sources: 1,530 km of state highways and major district roads were widened, strengthened and renewed in 2022-23 (up to December 2022) under the Central Road Infrastructure Fund, State Road Fund, NABARD and PPP.
The Review's Chapter 2 (Agriculture and Allied Sectors) records NABARD's RIDF-XXV funding canal renovation and modernisation works. For RSHDP-II the Review names the World Bank.
- (2)National Highway Authority of India — In the Review, NHAI's entries are national highway and expressway works: 48 works of 2,083.79 km, a Bharatmala work, and greenfield expressways such as Delhi–Vadodara (374 km in Rajasthan).
RSHDP-II upgrades state highways and is listed among externally aided projects, which the Review describes as loans or assistance from external funding agencies.
- (4)Asian Development Bank — ADB funds Rajasthan's other state-highway programme, the Rajasthan State Highway Investment Programme (RSHIP). Project-1 upgraded 16 highways of 980 km and was completed in September 2022.
Project-2 covers 11 highways of 754 km: the same number of highways as RSHDP-II, but a different length and a different lender. ADB also funds the urban projects RUSDP and RSTDSP.
Concept
An externally aided project is financed partly by a loan or grant from an external agency such as the World Bank, the Asian Development Bank (ADB), JICA or the New Development Bank, with the rest from the state and sometimes private partners.
The Economic Review 2022-23 notes that for projects sanctioned on or after 1 April 2005, the Government of India passes external assistance to the state on a "Back to Back" basis, as the 12th Finance Commission recommended.
Under this arrangement the state gets the same maturity, moratorium and amortisation schedule as the Government of India gets from the lender.
RPSC's 2023 syllabus lists "Infrastructure & Resources." and "Major Development Projects." under Economy of Rajasthan. Externally aided projects sit in both.
The Economic Review 2022-23 names the World Bank Group, JICA, ADB, AFD, KfW, the New Development Bank and the Asian Infrastructure Investment Bank among the major external agencies funding Rajasthan's projects in irrigation, water supply, forestry, roads, urban development, infrastructure and energy.
Its Table 10.7 lists ten ongoing externally aided projects in 2022-23: four ADB, three World Bank, two JICA and one New Development Bank.
Key facts
- RSHDP-II (World Bank): up-gradation of 801 km of state highways to two-lane or intermediate-lane standards, 11 highways in 8 packages.
- RSHDP-II was effective from October 2019 and scheduled for completion by March 2024; the World Bank loan portion is ₹1,779.43 crore.
- Under RSHDP-II Tranche-02, the Review lists 11 projects of 528 km costing ₹1,957.93 crore as under process, with World Bank funding under approval.
- RSHIP Project-1 (ADB): 16 highways of 980 km, completed in September 2022.
- RSHIP Project-2 (ADB): 11 highways of 754 km, effective from December 2019 and scheduled for completion by March 2024.
Source: Economic Review 2022-23, Government of Rajasthan, Chapter 5 (Infrastructure Development) and Chapter 10 (State Finance and Other Resources for Development).
Study next
Common traps
- Same highway count, different project: RSHIP Project-2 (ADB) also has 11 highways, but of 754 km; RSHDP-II (World Bank) has 11 highways of 801 km.
- Look-alike names: "State Highways Development Program-II" is the World Bank project, while "State Highway Investment Programme" is ADB's.
- NABARD appears in the Review as one of several funding sources for road renewal, and NHAI for national highways; neither is the named funder of RSHDP-II.
A question can name a Rajasthan externally aided project and ask which agency funds it.
A question can also give a project's length, number of highways or completion schedule and ask which project it describes, or ask the reader to match projects with lenders.
Related PYQs
Select the incorrect statement regarding the Rajasthan Forestry and Biodiversity Project (Phase-2).
- (1) It is assisted by Japanese International Cooperation Agency (JICA).
- (2) It covers 18 districts and 8 wild-life sanctuaries.
- (3) Abheda and Machia Biological Parks have been developed under the project.
- (4) Water Conservation has also been incorporated in the project.
Answer(2)
Related: an externally aided Rajasthan project and its assisting agency. That question asks for the incorrect statement about the Rajasthan Forestry and Biodiversity Project (Phase-2), one of whose statements names JICA (RPSC's key marks the 18 districts and 8 sanctuaries statement as incorrect); this one asks only for a road project's funder.
Practice
- practice — not a real PYQ
According to Rajasthan's Economic Review 2022-23, the Rajasthan State Highway Investment Programme Project-2 (RSHIP-2), covering 11 highways of 754 km, is funded by
- (a)World Bank
- (b)Asian Development Bank
- (c)Japan International Cooperation Agency
- (d)New Development Bank
Answer(2) — The Review says RSHIP-2 is funded by ADB. Option (1) funds RSHDP-II, the 801 km project. Option (3) funds water sector projects such as RWSLIP, and option (4) funds the Rajasthan Water Sector Restructuring Project for Desert Areas. - practice — not a real PYQ
Under the Rajasthan State Highways Development Program-II Project, as described in the Economic Review 2022-23, 801 km of state highways are to be upgraded to
- (a)four-lane access-controlled expressway standards
- (b)two-lane or intermediate-lane standards
- (c)six-lane greenfield corridor standards
- (d)single-lane rural road standards
Answer(2) — The Review describes up-gradation of 801 km of state highways to two-lane or intermediate-lane standards. Options (1), (3) and (4) do not appear in its description of the project.