The Asian Development Bank (ADB) has signed a significant loan agreement with the Government of India, providing USD 500 million (approximately ₹4,250 crore) to support green and sustainable infrastructure projects. This initiative aligns with India's climate commitments and aims to enhance the country's infrastructure in various sectors, including connectivity, energy transition, urban development, education, and healthcare.

Key Details of The Loan Agreement

The funds will be directed towards financing environmentally sustainable growth in infrastructure projects through the India Infrastructure Finance Company Ltd (IIFCL).

The agreement was signed by Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, and Mio Oka, ADB's Country Director for India.

The financing will particularly target under-resourced sectors and is expected to facilitate long-term capital investment necessary for meeting India's net-zero emissions goals. This includes developing innovative financing platforms and risk-mitigation instruments to attract private capital.

Institutional Capacity Building

The project will also focus on enhancing the institutional capacity of IIFCL to integrate best practices in sustainability into its operations. This includes establishing a sustainability unit and an environmental sustainability framework to assess project sustainability ratings.

This loan is part of a broader strategy to leverage private sector resources for infrastructure development in India. ADB has been working closely with IIFCL to improve its operational and risk management capabilities over the years. The collaboration aims to ensure that infrastructure projects are not only financially viable but also environmentally sustainable.

ANI