The investment will go to the India Infrastructure Fund, which aims to invest in mid-cap infrastructure companies in India, Xinhua news agency quoted an AIIB press release as saying.
The deal will benefit local infrastructure development by enhancing private capital inflows from global long-term investors, said the AIIB.
"Approving our first equity investment is another milestone for the bank and will enhance our potential to source and fund high-quality, private sector projects," said D.J. Pandian, Vice President and Chief Investment Officer of the AIIB.
Compared with loans, equity investment tends to be riskier but may bring higher returns.
On Thursday, the bank also approved a $114 million loan for a road project in Georgia and a $60 million loan for a hydropower plant rehabilitation project in Tajikistan, co-financed with the Asian Development Bank and the World Bank respectively.
The AIIB was established in 2015 and started operations in January 2016 to provide financing for infrastructure improvement in Asia.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)