India Turns to China-Based AIIB for Loans to Fund its Infrastructure Dream
REUTERS/ Kim Kyung-HoonBusiness13:49 28.02.2018Get short URL4103
India has received 40% of the total loan corpus of the AIIB in the last two years. Moreover, India’s finance ministry has claimed that the bank would soon approve at least 12 projects involving an assistance of $3.5 billion.
New Delhi (Sputnik) — India has sought greater assistance from the Beijing-based multilateral lending agency the Asian Infrastructure Investment Bank (AIIB) in order to bridge the “infrastructure deficit,” which is aimed to improve the quality of life for the rural poor. The AIIB has already committed more than $1 billion worth of assistance for five projects in India during the last two years. Moreover, it has also approved assistance worth $3.5 billion for twelve other projects.
READ MORE: AIIB Approves $250Mln Loan for China to Reduce Country’s Coal Use
India’s Minister of Finance Arun Jaitley said that in a short span of fewer than three years, the bank has already started functioning “very effectively.”
“I am glad that the bank has started functioning effectively and should contribute actively to infrastructure development of the Asian region which has suffered from lack of basic facilities. It will also fuel growth in the region and help overcome ‘infrastructure deficit’,” Jaitley said at the curtain raising ceremony of the AIIB’s 3rd annual conference, which is scheduled for June 25-26 in Mumbai.
According to D.J. Pandian, the AIIB’s chief investment officer, the agency is especially interested in making investments in India’s energy, roads, and urban development projects, and the bank will examine allotting more funds for such projects next year.
Union Finance Minister, Shri @arunjaitley unveiling the Logo &Theme of the 3rd Annual Meeting of AIIB along with Mr Jin Liqun, President, AIIB in New Delhi today. pic.twitter.com/PHLGjxYQNB
The AIIB is a multilateral development bank founded to bring countries together to address Asia’s daunting infrastructure needs. Headquartered in Beijing, the AIIB began operations in January 2016 and has now grown to 84 approved members worldwide. China is the largest shareholder in the bank followed by India and Russia.