Beijing-based Asian Infrastructure Investment Bank (AIIB), in which India holds the second-largest share after China, is in talks with Central and state governments as well as Indian industry to finance a robust pipeline of sovereign and private sector projects, AIIB Vice President Ajay Bhushan Pandey said on Tuesday.

The multilateral lender aims to increase its annual project financing from around $10 billion last fiscal year to $17 billion in the coming years.

On a visit to India, Pandey noted that the bank is expanding beyond traditional infrastructure and is now funding digital public infrastructure, data centres, communication, affordable housing, healthcare, and education.

So far, AIIB has deployed $12 billion in India, with Rs 1.8 billion invested in the private sector. The bank’s overall loan book stands at approximately $60 billion and is poised to grow further.

“We will closely engage with the Government of India, state governments and private players,” said Pandey, who previously served as India’s Finance Secretary and Chairperson of the National Financial Reporting Authority.

He stated that the AIIB is committed to building a strong pipeline of sovereign projects in collaboration with all relevant ministries and will also partner with the private sector to explore financing through various available mechanisms.

“Our message to Central and state ministries is clear—this is your bank, and you must optimally utilise the resources it offers,” Pandey added.

He shared that detailed meetings had taken place with the Department of Economic Affairs and the Department of Water Resources, River Development and Ganga Rejuvenation to explore support for dam revival, the Namami Gange programme, and river interlinking projects. Further talks are scheduled with ministries of health and power, as well as Maharashtra’s chief minister and officials, to shape a comprehensive infrastructure project pipeline.

Alongside China and India, the bank’s major shareholders include Russia, Germany and South Korea. With 110 member nations, the AIIB is expanding its role in development finance, particularly as emerging economies face pressing infrastructure and climate-related investment needs.

According to a recent Deloitte India report, titled The Climate Response: Tapping into India’s Climate and Energy Transition Opportunity, India will need around $1.5 trillion in investment by 2030 to address climate change. This funding would target renewable energy, biofuels, decarbonisation, and sustainable infrastructure.