ADB signs $500 million loan for Delhi-Meerut RRTS Corridor

ADB signs $500 million loan for Delhi-Meerut RRTS Corridor

Part of: GS Prelims and GS-II- International Relations; Global Groupings

In news

• The Asian Development Bank (ADB) and the Government of India signed a $500 million loan, to build a modern, high-speed 82-kilometer Delhi-Meerut Regional Rapid Transit System (RRTS) corridor.

• It is the first tranche of a total $1 billion facility.

Key takeaways

• It will improve regional connectivity and mobility in India’s national capital region (NCR).
• The first tranche loan will support construction of the first of three priority rail corridors planned under the NCR Regional Plan 2021 to connect Delhi to other cities in adjoining states.

Important value additions 

Asian Development Bank (ADB) 

• It is a regional development bank established on 19 December 1966, which is headquartered in Manila, Philippines.
• ADB aims to promote social and economic development in Asia. 
• The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.

Do you know?

• The ADB was modeled closely on the World Bank, and has a similar weighted voting system.
• From 31 members at its establishment, ADB now has 68 members.
• ADB is an official United Nations Observer.
• India was a founding member of the Asian Development Bank (ADB) in 1966 and is now the bank’s fourth largest shareholder and top borrower.
• As of 31 December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).