Finance - Central News Hub

World Bank To Lend $500 Mn For Green Highways In India

India and the World Bank has signed a $500 million project to build safe and green national highway corridors in the states of Rajasthan, Himachal Pradesh, Uttar Pradesh and Andhra Pradesh.

The project will also enhance the capacity of the Ministry of Road Transport and Highways in mainstreaming safety and green technologies.

The Green National Highways Corridors Project will support the ministry construct 783 km of highways in various geographies by integrating safe and green technology designs such as local and marginal materials, industrial by-products, and other bio-engineering solutions. The project will help reduce GHG (greenhouse gas) emissions in the construction and maintenance of highways.

“Connectivity for economic growth and connectivity for sustainable development are two important aspects of a country’s development trajectory. This operation brings these two priorities together in support of India’s growth strategy,” said Junaid Ahmad, World Bank Country Director in India.

“This project will provide efficient transportation for road users in the four states, connect people with markets and services, promote efficient use of construction materials and water to reduce the depletion of scarce natural resources, and help lower GHG emissions,” he added.

The National Highways of India carry about 40 per cent of road traffic. However, several sections of these highways have inadequate capacity, weak drainage structures and black spots prone to accidents. The project will strengthen and widen existing structures; construct new pavements, drainage facilities and bypasses; improve junctions; and introduce road safety features.

As it is imperative that the infrastructure investments are climate resilient, disaster risk assessment of about 5,000 km of the National Highway network will also be undertaken under the project along with support to the ministry for mainstreaming climate resilience aspects in project design and implementation.

The $500 million loan from the International Bank for Reconstruction and Development (IBRD) has a maturity of 18.5 years, including a grace period of five years.

Also Read: World Bank chief praises G20 progress on debt relief

Also Read: World Bank to advise DIPAM on asset monetisation

Paytm set to enter credit card business

Leading digital financial services platform Paytm on Monday said it will partner with various card issuers to introduce co-branded credit cards and is aiming to issue 20 lakh cards in the next 12-18 months.

The move is aimed at transforming the credit market by enabling “new to credit” users to join the digital economy, the company said.

“In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. At Paytm, our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals,” Bhavesh Gupta, CEO – Paytm Lending, said in a statement.

“These cards are designed to help them lead a healthier financial life through managing and analysing spends to make well-informed decisions. This can transform the credit market by bringing ‘new to credit’ users into the formal economy.”

Given the limited access to banking, stringent documentation and long processing times, India’s credit card penetration stands at only three per cent compared 320 per cent in markets such as the US.