New Development Bank

New Development Bank

Part of: GS Prelims and GS- II – Government policies and interventions

In news Recently, during BRICS (Brazil, Russia, India, China and South Africa) meet, India proposed that NDB’s (New Development Bank) scope be expanded to strengthen Social Infrastructure besides promoting industry.

• Social Infrastructure includes the construction and maintenance of facilities that support social services such as healthcare, education, and housing.
• India is the chair of the BRICS grouping for 2021.

What is New Development Bank?

• It is a multilateral development bank jointly founded by the BRICS countries at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
• It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
• It is headquartered at Shanghai, China.
• In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
• Objectives:
  • Fostering development of member countries.
  • Supporting economic growth.
  • Promoting competitiveness and facilitating job creation.
  • Building a knowledge sharing platform among developing countries.
• To fulfill its purpose, the Bank supports public or private projects through loans, guarantees, equity participation and other financial instruments.

Major Projects funded by NDB in India:

• It has committed funding to a number of major infrastructure projects in India, including the Mumbai Metro rail, Delhi-Ghaziabad-Meerut Regional Rapid Transit System and many Renewable Energy projects.
• The NDB has so far approved 14 Indian projects for an amount of nearly USD 4.2 billion.
• In 2020, India announced a 1 billion USD loan pact with NDB to boost rural employment and infrastructure.

News source: IE