Loan Agreements between Govt & Asian Development Bank to boost the infrastructure sector in India

In News: Several loan agreements have been signed by the Government and the Asian Development Bank to boost the infrastructure sector in the country.

• A loan agreement was signed worth 350 million US dollars to improve connectivity in Maharashtra
• A loan agreement worth 300 million US dollars will be utilised to upgrade over 300 kilometres of State highways and major district roads in Assam.
• A 220 million dollar loan agreement was signed to improve energy security, quality of supply, efficiency, and resilience of the power sector in Tripura.
• A loan agreement worth 350 million US dollars was signed to build new lines and improve the connectivity of the metro rail system in Chennai.

About Asian Development Bank

• ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
• A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.
• The Philippines capital of Manila was chosen to host the new institution, which opened in 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe was ADB’s first President.
• During the 1960s, ADB focused much of its assistance on food production and rural development.
• In May 2014, plans were announced to combine the lending operations of ADB’s two main funds, the Asian Development Fund, and its ordinary capital resources. The merger will boost ADB’s total annual lending and grant approvals to as high as $20 billion—50% more than the current level when it takes effect in January 2017.
• From 31 members at its establishment in 1966, ADB has grown to encompass 68 members including India—of which 49 are from within Asia and the Pacific and 19 outside.
• This bank was modelled on the lines of the world bank. As of 31st December 2021, Japan holds the largest share in ADB with 15.677%, followed by U.S.A (15.567%), China (6.473%), and India (5.812%).
• It is headquartered in Manila, Philippines.

Other existing Agreements:

• ADB and India have signed a loan of $206 million to strengthen urban services in 5 Tamil Nadu cities.
• Asian Development Bank (ADB) has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX.
• Asian Development Bank (ADB) had prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).

Source: News on AIR