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ADB commits $10 bn for projects in India

ADB commits $10 bn for projects in India
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Takehiko Nakao, the new President of the Asian Development Bank (ADB) informed that the multilateral lending agency would maintain its annual lending at $10 billion (Rs 54,000 crore) to India over the next three years.

He said this to media persons at the end of the ADB’s 46th annual meeting in New Delhi. He also informed that the bank was facing resource constraints and it would be looking at all options to overcome it.

As a strategy to deal with resource crunch, the bank was asked to explore ways for co-financing with other bilateral sources and catalysing private sector resources.

It may be recalled that India is the largest borrower of the Manila-based multilateral lender. ADB provided $2.4 billion loan to India in 2012 across sectors like transport, energy, commerce, industry, trade and finance.

The ADB board of governors approved Takahiko’s vision of three Is-innovation, inclusion and integration. ADB is of the view that without addressing the issue of inequality growth would not be sustainable. India, the chair of the board for this meeting, also endorsed his view.

Arvind Mayaram, Secretary, department of economic affairs pointed out that it will be more important than ever to ensure that growth is economically, socially and environmentally sustainable and inclusive. He said this in the closing remarks at the board of governors meeting.

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