$500 million loan agreement between ADB and Government of India for green infrastructure

The Government of India has signed a loan agreement of $500 million (approximately ₹4,250 crore) with the Asian Development Bank (ADB) in keeping with its climate commitments. This loan will be provided to India Infrastructure Finance Company Limited (IIFCL) with guarantee.

Signing of loan agreement

• Signing of Agreement:
  Signed on December 23 by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Mio Oka, Director (India), ADB.
• Mio Oka’s statement:
  • This financing from ADB will help IIFCL to raise long-term capital.
  • This will encourage green and sustainable infrastructure in sectors such as energy sector transformation, urban development projects, education and health.
• Partnership of ADB and IIFCL:
  • Mio Oka said ADB has been working closely with IIFCL for years to strengthen its operations and risk management capabilities.

Introduction to Asian Development Bank (ADB)

• Established: 1966.
• Headquarters: Manila, Philippines.
• Member countries: 69, of which 49 are from the Asia-Pacific region and 20 from other regions.

Objective of ADB:

1. To encourage sustainable economic development.
2. Promoting inclusive growth and regional cooperation.
3. Poverty alleviation and improvement in quality of life.
4. Ensuring environmental sustainability.

Importance of funding for IIFCL

• IIFCL is a premier government enterprise providing long-term financial support for green and sustainable projects.
• This loan from ADB will help IIFCL to strengthen infrastructure projects related to energy, urban development, education and health.

Regional importance of ADB

ADB provides loans to various member countries to promote economic and social development in the Asia-Pacific region.

• Its goal is to promote regional cooperation and sustainable development.
• ADB pays special attention to poverty alleviation and environmental improvement through infrastructure projects.