You are here: Home » Economy & Policy » News
Business Standard

AIIB, ADB approve $100 mn loan for India's power sector

India is the second largest shareholder in the AIIB

Topics
Aiib

Press Trust of India  |  Beijing 

The logo of Asian Infrastructure Investment Bank is seen at its headquarter building in Beijing. Photo: Reuters
The logo of Asian Infrastructure Investment Bank is seen at its headquarter building in Beijing. Photo: Reuters

China-led and multilateral funding agency ADB will co-finance a $100-million loan for India to improve power transmission network and expand the use of solar and wind energy, state media reported on Monday.

The loan, approved by the Board of Directors of the Beijing-headquartered Asian Infrastructure Investment Bank (AIIB), involves co-financing of $50 million from the Manila-based Asian Development Bank (ADB), state-run Xinhua agency reported today.

This was the fourth co-financing made by the and the ADB, two major multilateral development banks in Asia.

India is the second largest shareholder in the

The bank has an authorised capital of $100 billion.

China is the largest shareholder with 26.06 per cent voting shares in the bank. India is the second largest shareholder with 7.5 per cent followed by Russia 5.93 per cent and Germany with 4.5 per cent.

Since the AIIB commenced its operations in 2016, the two sides have co-financed four projects, including the M4 expressway in Pakistan with $100 million from each bank.

The second is a natural gas production and transmission project in Bangladesh, with an aggregate financing of $227 million, including $167 million from the AIIB.

In September, ADB chief economist Yasuyuki Sawada said the two banks could cooperate to meet Asia's huge infrastructure investment needs.

Sawada said that infrastructure needs in Asia and the Pacific stand at about $1.7 trillion per year, and there is a finance gap of $500 billion per year, the report added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, October 02 2017. 22:46 IST
RECOMMENDED FOR YOU
.