India and Asian Development Bank have signed two loan agreements under which the multilateral agency will give 432 million dollars for the development of highways in Madhya Pradesh and strengthening power sector in Bihar. Of the total amount, 300 million dollars will be extended to Madhya Pradesh to help the state upgrade about 1,000 kilometer highways in the Eastern and West Central parts while 132 million dollars has been assigned to Bihar to strengthen its power sector. Talking to reporters after signing of the agreement, the Joint Secretary of Department of Economic Affairs, Rajamony yesterday said the project will help sustain high economic growth and reduce poverty in Madhya Pradesh. The state has recorded a growth of more than 7 per cent per annum since 2005. He said the loan extended to Bihar will help it strengthen its power transmission and distribution system and reduce technical and commercial losses. The project will also help the state attract investment and tap its economic potential. Speaking on the occasion, Prodyut Dutt of ADB said that the bank is also expected to process an urban development loan for Bihar in 2011 and the second Power Improvement Project in 2014.