MUMBAI: The Asian Infrastructure Investment Bank (AIIB) will invest a massive $3.8 billion in Indian infrastructure projects, said interim Finance Minister Piyush Goyal. Of this, $1.4 billion for seven projects has been approved, while the country is seeking project finance for nine more projects aggregating $2.4 billion.
“Out of projects worth $4.4 billion, $1.4 billion has been approved,” Goyal said. It may be noted that AIIB has approved $4.4 billion since its inception in 2016, of which India borrowed $1.21 billion — the largest by any individual member.The multilateral agency also committed an equity investment of $200 million (Fund of Funds) in National Investment and Infrastructure Fund in two tranches.
The Beijing-headquartered development bank is currently reviewing some projects related to urban and rural transportation, power projects and water and waste management. Some of these projects include irrigation and flood management projects in West Bengal, a subway line in Mumbai, rural roads and city development for Amravati and the new state capital of Telangana.
For this year, AIIB is looking at making an investment of or lending up to $3.5 billion to countries including Bangladesh, Turkey, Egypt and India.
“India is the largest borrower. We are working with other countries like Bangladesh, Turkey etc,” said D J Pandian, Vice President and Chief Investment Officer, AIIB adding that the development bank was not short of funds. AIIB has a cash chest of $20 billion, plus $80 billion worth of guarantees from member countries.
Meanwhile, speaking at a panel, Goyal said things were changing for the better with improved governance practices enabling faster decision making.
He added that political uncertainty will remain around large projects like setting up a refinery or a nuclear power plant. “Money is safe in India, because the rule of law prevails,” he said.
Government working on boost to Air India’s operational efficiency
Mumbai: Following an unsuccessful attempt to privatise Air India, the government is now strengthening the management of the national carrier, said Union Minister Piyush Goyal on Monday. The idea is to first improve operational efficiency in order to attract investors, strategic or otherwise, Goyal reiterated.
India needs $4.5 lakh crore for infra projects over 10 years
Mumbai: India will need a staggering $4.5 lakh crore to build infrastructure over the next decade, said Union Minister Piyush Goyal.
He said though finding capital won’t be an issue, cost of funding, however, will be a challenge primarily due to hardening interest rates globally.