New Delhi, March 26 (IANS): The government on Thursday signed a $300 million loan agreement with the Asian Development Bank (ADB) for improving road connectivity and increasing domestic and regional trade in north Bengal and the north eastern region (NER) of the country.

According to Tarun Bajaj, joint secretary (multilateral institutions) in the department of economic affairs of the Finance Ministry, the project will improve road connectivity and efficiency of the international trade corridors by expanding roads in north Bengal and the north-eastern region of the country.

"The investment on the 'last mile' connectivity will contribute to achieve the objective of regionally balanced and inclusive growth of remote and economically lagging regions," he added.

The ministry of finance said the loan is the first tranche of the $500 million multi-tranche south Asian sub-regional economic cooperation (SASEC) road connectivity investment programme.

Under the project, about 500 km of roads will be constructed.

The ministry further said that the first tranche of the project will construct two national highways totalling about 150 km in West Bengal and state roads totalling about 180 km in Manipur, extending to Myanmar. The project is expected to be completed by December 31, 2021.