China-based Asian Infrastructure Investment Bank (AIIB) has approved USD 1.5 billion in loans to India for infrastructure development related projects in 2018.
According to the AIIB’s Chief Investment Officer, D.J. Pandian, informed in a statement released on 27th February 2018 that India would utilise the loans funds for the investment in India’s energy, Roads and Urban Development Projects.
The AIIB’s loans also comprise USD 200 million, commitment to India’s National Investment and Infrastructure Fund (NIIF) in order to spend on roads, housing &urban development and energy sector, the AIIB bank will provide the Indian government with a freedom to decide how to invest that money.
As per source, most of the funds for the energy sector will likely be dedicated to renewables.
Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank instituted by China. Its main purpose is to provide finance to infrastructure development and regional connectivity projects in the Asia-Pacific region.
AIIB was officially established in December 2015 and opened for business in January 2016. It is headquartered in Beijing
AIIB till now has 84 members including India. It has an authorised capital of US $100 billion. China is the largest shareholder with 26.06% voting shares; India is the second largest shareholder with 7.5% followed by Russia 5.93% and Germany with 4.5% voting shares.