The Asian Infrastructure Investment Bank (AIIB) has ramped up its investments in India with total in-country financing now standing at $2.9 billion.
Two of its most recent projects鈥攁pproved by AIIB鈥檚 Board of Directors in October totalling $575 million鈥攁re expected to ease congestion in the country鈥檚 financial hub and boost private capital investment in renewable energy, power transmission and water infrastructure.
A loan of $500 million granted to the Government of India is expected to fast-track work on Mumbai鈥檚 suburban railway network, improving the safety and daily commute of millions of passengers across the city. The funds will contribute to a quadrupling of the Virar-Dahanu Road corridor (64 km) to provide an extension of the suburban railway service to connect peripheral areas with Mumbai. The project will also see the construction of a new suburban railway corridor between Panvel and Karjat localities (28 km) to cater to commuters in the area.
Additionally, there will be an installation of control measures on 36 priority sections of existing lines. These measures include track segregation by fencing or using reinforced concrete walls and pedestrian crossings over or under the tracks.
鈥淥ver the past four years, AIIB鈥檚 investments in India have grown exponentially,鈥� says DJ Pandian, Vice-President and Chief Investment Officer, AIIB. 鈥淭his is a clear sign of our valuable partnership. AIIB will continue aligning its commitments with the Government鈥檚 priorities, with the bank serving as a catalyst to India鈥檚 continued development.鈥�
For her part, Laurel Ostfield, Director-General & Company Spokesperson, AIIB, shares,鈥淪o far, we have invested $3 billion in India and we continue to see that grow. We have over a billion dollars in our pipeline for the country. The infrastructure need is huge here; India is our second largest shareholder and we will continue to invest here.鈥�
As part of its firm commitment to financing sustainable infrastructure, in October, the bank also approved a loan of $75 million to Tata Cleantech Capital. The Tata Cleantech Sustainable Infrastructure On-Lending Facility project aims to increase private capital investment in renewable energy, power transmission and water infrastructure.
To date, AIIB, which commenced operations in India in 2016, has contributed to 13 projects to assist its second largest shareholder develop infrastructure and services in transport, energy, water and finance.
- SHRIYAL SETHUMADHAVAN
