Reported by: banking|Updated: August 16, 2018
Asian Infrastructure Investment Bank (AIIB) is providing investment in India by lending to projects in rural infrastructure, energy, environmental protection, transportation, telecom, water supply, sanitation, urban development and logistics. Banking Frontiers, reporting the 3rd AGM of AIIB, said prior to this, in just 2 years of operation, it has already committed over $1 billion of financing in India. “India has been the largest recipient of the total $4.2 billion funds disbursed by AIIB prior to the meeting. India is also the second largest stakeholder with over 8% stake in AIIB. India has borrowed nearly 30-40% of the bank’s lending capacity,” said Subhash Chandra Garg, Secretary – Economic Affairs, in the ministry of finance.
AIIB is also supporting India’s priority of building sustainable infrastructure in the roadways and railways sector. AIIB’s first major metro project is the Bengaluru Metro Rail project for which $335 million is being provided. It has also approved a loan of $329 million to finance the Gujarat rural roads project. This is the first standalone project of AIIB in India and is consistent with the bank’s thematic priority of connectivity. The project will improve the accessibility of over 1000 villages, improving farm to market roads for villagers and connecting them to hospitals and schools. Maharashtra government has sought AIIB’s help for its Mumbai Metro Line 4.