Government of India and New Development Bank sign a loan agreement for $1,000 million to provide support to Aatma Nirbhar Bharat Abhiyan through MGNREGS

Government of India and New Development Bank sign a loan agreement for $1,000 million to provide support to Aatma Nirbhar Bharat Abhiyan through MGNREGS

Part of: GS Prelims and GS-III – Infrastructure

In news

• The Government of India and New Development Bank signed a loan agreement for $1,000 million to provide support to Aatma Nirbhar Bharat Abhiyan through Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Key takeaways

• The programme will support Government to enable economic recovery in the rural areas through Natural Resource Management (NRM) works.
• The programme proposes creation of durable rural infrastructure assets relating to NRM and generation of employment opportunities for rural poor, especially migrant workers who have returned from urban areas and have lost their livelihoods due to the COVID-19 pandemic.
• The $1 billion loan from the NDB has a tenor of 30 years, including a 5-year grace period.
  

Do you know?

• The NDB was established based on the Inter-Governmental agreement among the BRICS countries (Brazil, the Russian Federation, India, China and South Africa) signed in 2014.
• Objective: To mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries.
• Headquarter: Shanghai, China. 
• The first regional office of the NDB is in Johannesburg, South Africa.