Reports suggest that Asian Development Bank (ADB), the Manila-based multilateral development bank, plans to lend around $10 billion to the Indian public sector between 2012-2017 and $2 billion to the private sector in this period.
It is also learnt that the bank is holding talks with the central government on its country strategy paper for India.
Meanwhile, ADB is holding preliminary discussion with the Punjab government for extending a $200-300 million loan for improving the state governmentÂ’s process efficiency, Hun Kim, Country Director in India said. Both the parties may sign the loan agreement in 2013-14, Kim said.
ADB was looking for fiscal space — for investments in areas such as education, infrastructure — that would lead to long-term growth.
Last year, ADB had sanctioned $400-million policy loan to West Bengal. Kim said that the first tranche of this loan had been disbursed.
He also made it clear that ADB does not stipulate conditions to raise taxes. “We don’t ask states to raise taxes. We work together with the government to see how the overall fiscal situation could be improved,” Kim said.
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