The Asian Development Bank (ADB) has signed an agreement to provide $23m in funding to GR International (GRIL) in order to expand India’s road infrastructure.
ADB will invest the funds in a debt instrument issued by GRIL.
The investment will enable GRIL to purchase the new building equipment necessary to enhance road construction India.
The agreement was signed in New Delhi by ADB’s private sector operations director-general Michael Barrow and GRIL chairman and managing director Vinod Kumar Argawal.
Barrow said: “Supporting the growth of the transport sector is a key focus area of ADB’s private sector strategy in India. We are pleased to provide long-term financing to GRIL, which will enable it to expand its execution capacity and allow it to bid for larger and more complex projects.”
Established in 1995, GRIL is a major engineering and construction company based in India. It currently has orders worth $2.78bn, which the company plans to execute in the next three years.
Agarwal said: “GRIL has always focused on constructing quality roads and highways since its inception. We want to play a more prominent role in the highway construction space in India in the future while maintaining our focus on good quality and responsible construction. We are pleased to be associated with ADB.”
This June, ADB granted a $350m loan for the rehabilitation and modernisation of state highways and major district roads in the Indian state of Chhattisgarh.
ADB also provided a $200m loan for the upgrade of around 230km of highways in the Indian state of Bihar in November 2018.
Last year, ADB signed a $250m loan agreement alongside the Indian Government to fund the construction of 6,254km of all-weather rural roads in five states. The agreement was signed under the Prime Minister’s Rural Roads Programme (PMGSY).
ADB invested an overall total of $21.6bn worth of loans and grants last year.