ADB commits concessional loan to India under Green Financing facility

The Asian Development Bank (ADB) on Sunday assured India to provide concessional loans under the Green Financing facility to help in achieving its vision.

ADB President Masasugu Asakawa, who is in Delhi to attend the G20 Leaders' Summit, on Sunday met Finance Minister Nirmala Sitharaman.

During the bilateral meeting, both discussed the outcome of G20 India Presidency and ADB contribution to G20 work streams under the Finance Track as well as the Sherpa Track.

Asakawa appreciated the Indian Presidency's efforts towards realising the agenda of 'One Earth, One Family, One Future', the finance ministry said in a post on X.

"Mr. Asakawa @ADBPresident reiterated that @ADB_HQ aims to be the climate bank for the Asia and Pacific and committed that a #GreenFinancing facility is being developed by @ADB_HQ for providing concessional finance for India to realise this vision," it said.

During the meeting, the Finance Minister mentioned that the role of all MDBs, including ADB, in the preparation of the International Financial Architecture Working Group's G 20 Roadmap has been crucial and emphasised the need for additional push by the MDB ecosystem as well as the relevant stakeholders to step up the implementation of Capital Adequacy Framework (CAF) measures.

ADB President assured support to Prime Minister Narendra Modi's vision and transformative initiatives such as PMGatiShakti, GIFT City, Green Hydrogen Hub, Future Cities of India etc. through ADB's Country Partnership Strategy 2023-2027 for India.

During 20232027, ADB operations in India will focus on accelerating structural transformation and job creation, promoting climate-resilient growth, and deepening social and economic inclusiveness.

This Country Partnership Strategy (CPS), 2023-2027 for India is well aligned with India's national development priorities to be achieved by 2047 when the country marks 100 years of independence. Economic and sector reforms and national flagship programs embody the national priorities.

Asakawa during the meeting also recognised India's growing contribution to ADB's Asian Development Fund to help ADB's poorest and most vulnerable developing member countries.

India is a key ADB partner and fourth largest shareholder. As of the end of December 2022, ADB had committed USD 52.6 billion in 605 public sector loans, grants, and technical assistance in India, as well as USD 8 billion in private sector investments.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members -- 49 from the region.