Mumbai, The Maharashtra cabinet on Tuesday approved a ₹6,429-crore project to construct and upgrade about 3,500 km of rural roads and bridges under Phase III of the Chief Minister Gram Sadak Yojana with a USD 500 million loan from the Asian Infrastructure Investment Bank .Maharashtra cabinet clears proposal to avail USD 500 million AIIB loan for rural roads schemeThe decision was taken at a meeting chaired by Chief Minister Devendra Fadnavis.The AIIB will provide a USD 500 million loan for the project, while the state government will contribute USD 215 million , accounting for 30 per cent of the project cost, according to an official statement.The project aims to strengthen rural connectivity by upgrading roads in villages and districts. Road and bridge works covering about 3,500 km will be undertaken based on detailed project reports.The principal amount of the AIIB loan and interest will be repaid through provisions made in the state budget. The loan will be repaid over 25 years, including a five-year grace period, the government said.The cabinet also approved undertaking an additional 2,500 km of road works under the Chief Minister Gram Sadak Yojana through state funding.The government said the project would improve transportation of agricultural produce, enhance access to education, healthcare and markets, and boost the rural economy.In another key decision, the cabinet approved the Maharashtra Road Improvement Project to modernise the state's road infrastructure with financial assistance from AIIB and the New Development Bank .The government will seek funding of USD 1 billion each from AIIB and NDB in two phases. In the first phase under each funding arrangement, external assistance of USD 500 million and state participation of USD 215 million will take the project cost to USD 715 million .The total estimated cost of both phases under each funding line is about ₹12,442 crore.The project will focus on upgrading roads in high-traffic growth corridors where commercial vehicles account for more than 40 per cent of traffic.Around 750-km of roads will be upgraded in the first phase under AIIB funding and another 750 km under NDB funding.The cabinet also approved the inclusion of five additional colleges as constituent institutions of Hyderabad National Collegiate University, Mumbai, a cluster university.These institutions are Principal K M Kundnani College of Pharmacy, Kishinchand Chellaram Law College, Smt Mithibai Motiram Kundnani College of Commerce and Economics, Rishi Dayaram and Seth Hassaram National College and Seth Wassiamull Assomull Science College, and Thadomal Shahani Engineering College, all located in Mumbai.The decision is aimed at strengthening the academic framework of the cluster university and expanding higher education opportunities, the statement added.The cabinet also approved the creation of posts in the Parshuram Economic Development Corporation, the Veer Shiromani Maharana Pratap Economic Development Corporation and Shri Vasavi Kanyaka Economic Development Corporation.Each corporation will have four regular posts and five outsourced positions. The annual expenditure for the three corporations has been estimated at ₹1.18 crore.Other decisions include clearing amendments to an earlier decision regarding the corporations, providing that they would function as government-guaranteed companies without share capital under Section 8 of the Companies Act, 2013, and would receive adequate annual government funding for implementation of schemes and administrative expenses.This article was generated from an automated news agency feed without modifications to text.