Ahead of the commencement of its lending operations, president-designate of the newly-created Asian Infrastructure Investment Bank (AIIB) Jin Liqun today called on Prime Minister Narendra Modi.
The Beijing-based USD 100 billion multi-lateral lender, which was set up to boost lending for infrastructure project, is scheduled to commence operations later in the month.
Besides Modi, Jin also met Economic Affairs Secretary Shaktikanta Das.
"AIIB will become operational this month. Will be a good source of funding for infrastructure projects in India... Had very positive meeting with the president-designate of AIIB," Das tweeted.
The China-initiated development bank was formally set up in Beijing on December 25. China had nominated its former finance minister Jin as the first president of AIIB.
The bank now has 57 members and is seen as potential rival to the World Bank and the Asian Development Bank.
With authorised capital of USD 100 billion and subscribed capital of USD 50 billion, AIIB will invest in sectors such as energy, transportation, urban construction and logistics as well as education and healthcare.
China, India and Russia are the three largest shareholders, taking 30.34 per cent, 8.52 per cent, 6.66 per cent stake, respectively, in the newly-formed bank.
Their voting shares are calculated at 26.06 per cent, 7.5 per cent and 5.92 per cent, respectively.
Based on the shareholding, India is expected to get the post of the vice-president.
In India, infrastructure financing has traditionally been done through the government and the existing multi-lateral development banks. These have been supplemented by public sector contributions through public-private partnership projects.
However, in the context of fiscal consolidation and risk-averse private sector, AIIB will make additional resources available for infrastructure development.