Government signs $500 mn loan deal with ADB to boost green infra projects
The Centre and Asian Development Bank (ADB) has signed a $500 million (about Rs 4,250 crore) loan to support green and sustainable infrastructure projects aligned with the country's climate commitments.
The ADB loan, with a sovereign guarantee, will be extended to the India Infrastructure Finance Company Ltd (IIFCL), the finance ministry said in a statement on Monday. The signatories to the Financing Environmentally Sustainable Growth in Infrastructure Project were Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Country Director Mio Oka for ADB.
"The ADB financing will help the 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," said Oka.
To meet its net-zero commitments, the country needs immense private capital investment that will require innovative financing platforms and risk-mitigation instruments to address inherent sector risks and market asymmetries, it said. The ADB has worked closely with the IIFCL over the years to develop its operational and risk management capacities. As the IIFCL has developed and evolved, its operations are increasingly geared toward leveraging private sector resources that necessitate the expansion of its product offerings for potential institutional investors, it said.
