The Asian Development Bank (ADB) today approved a $500 million loan to support India’s economic growth by promoting environmentally sustainable infrastructure.
Read also – SC and CGC Group Sign MoU to Boost MSME and MTC Access to Capital Market Financing
“India’s economy is one of the fastest growing in the world. Critical to this process are robust infrastructure that aligns with the country’s climate commitments.” said ADB Principal Finance Sector Specialist Sanjeev Kaushik. “ADB is strengthening support to the government in this area to ensure that India’s economic development will be inclusive and sustainable.”
Read also – GAMUDA-DNeX Partnership Set to Redefine Malaysia’s AI Transformation with Sovereign Cloud
India is among the world’s most impacted economies due to climate change and intensifying hazards—such as floods, droughts, and cyclones—require infrastructure projects that are designed to mitigate these risks. But there is a lack of sufficient funding and risk-sharing mechanisms within the local financial market for these types of projects. The country is facing a $1 trillion climate financing gap that the public sector cannot meet alone.
The ADB loan, with a sovereign guarantee, to India Infrastructure Finance Company Limited (IIFCL) will advance sustainable infrastructure development. This will help IIFCL provide long-term capital for infrastructure projects focusing on connectivity and energy transition as well as under-resourced sectors like urban projects, education, and health care. IIFCL can play the role of anchor government investor to attract private sector entities to join a consortium of lenders to finance these initiatives.
The Financing Environmentally Sustainable Growth in Infrastructure Project will build the institutional capacity of IIFCL to integrate green and best practices into the infrastructure projects. A sustainability unit and an environmental sustainability framework and scoring method to assess the sustainability rating of the projects will also be established.
About ADB
The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. It assists its members and partners by providing loans, technical assistance, grants, and equity investments to promote social and economic development.. Established in 1966, it is owned by 69 members—49 from the region.
