+
AIIB Investment in India nears $3 billion
ECONOMY & POLICY

AIIB Investment in India nears $3 billion

The Asian Infrastructure Investment Bank (AIIB) has ramped up its investments in India with a total in-country financing now standing at $2.9 billion.

Two of its most recent projects – approved by AIIB’s Board of Directors in October totaling $575 million – are expected to ease congestion in the country’s financial hub and boost private capital investment in renewable energy, power transmission and water infrastructure.

A loan of $500 million granted to the government of India is expected to fast-track work on Mumbai’s suburban railway network, improving the safety and daily commute of millions of passengers across the city. The funds will contribute to a quadrupling of Virar-Dahanu Road corridor (64 km) to provide an extension of the suburban railway service to connect peripheral areas with Mumbai. The project will also see the construction of a new suburban railway corridor between Panvel and Karjat localities (28 km) to cater to commuters in the area under rapid urbanisation and population growth.

Additionally, there will be an installation of control measures on 36 priority sections of existing lines to reduce fatal accidents. These measures include track segregation by fencing or using reinforced concrete walls and pedestrian crossings over or under the tracks. With a population of about 12 million, rail is the primary means of transport in Mumbai, where the suburban network totals almost 400 km and carries more than 7.5 million passengers a day.

“Over the past four years, AIIB’s investments in India have grown exponentially,” says DJ Pandian, Vice President and Chief Investment Officer, AIIB. “This is a clear sign of our valuable partnership. AIIB will continue aligning its commitments with the government’s priorities, with the bank serving as a catalyst to India’s continued development.”

On her part, Laurel Ostfield, Director General & Company Spokesperson, AIIB, shares, “So far we have invested $3 billion in India and we continue to see that grow. We have over a billion dollars in our pipeline for the country. The infrastructure need is huge here, India is our second largest shareholder and we will continue to invest in here.”  

As part of its firm commitment to financing sustainable infrastructure, in October, the bank also approved a loan of $75 million to Tata Cleantech Capital (TLLC), a leading financier of renewable energy in India. The Tata Cleantech Sustainable Infrastructure On-Lending Facility project aims at increasing private capital investment in renewable energy, power transmission and water infrastructure. The project will increase the provision of affordable and clean power, reduce greenhouse emissions and expand the power’s network reach and capacity. Under the Paris Agreement, the Government of India plans to reduce the country’s carbon intensity by 30-35 per cent of 2005 levels.

AIIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, the bank began operations in January 2016 and has now grown to 100 approved members worldwide.

To date, AIIB, which commenced operations in India in 2016, has contributed to 13 projects to assist its second largest shareholder develop infrastructure and services in transport, energy, water and finance.

- SHRIYAL SETHUMADHAVAN

In the picture (L-R): Laurel Ostfield, Director General & Company Spokesperson, AIIB, and DJ Pandian, Vice President & Chief Investment Officer, AIIB

The Asian Infrastructure Investment Bank (AIIB) has ramped up its investments in India with a total in-country financing now standing at $2.9 billion.Two of its most recent projects – approved by AIIB’s Board of Directors in October totaling $575 million – are expected to ease congestion in the country’s financial hub and boost private capital investment in renewable energy, power transmission and water infrastructure.A loan of $500 million granted to the government of India is expected to fast-track work on Mumbai’s suburban railway network, improving the safety and daily commute of millions of passengers across the city. The funds will contribute to a quadrupling of Virar-Dahanu Road corridor (64 km) to provide an extension of the suburban railway service to connect peripheral areas with Mumbai. The project will also see the construction of a new suburban railway corridor between Panvel and Karjat localities (28 km) to cater to commuters in the area under rapid urbanisation and population growth. Additionally, there will be an installation of control measures on 36 priority sections of existing lines to reduce fatal accidents. These measures include track segregation by fencing or using reinforced concrete walls and pedestrian crossings over or under the tracks. With a population of about 12 million, rail is the primary means of transport in Mumbai, where the suburban network totals almost 400 km and carries more than 7.5 million passengers a day.“Over the past four years, AIIB’s investments in India have grown exponentially,” says DJ Pandian, Vice President and Chief Investment Officer, AIIB. “This is a clear sign of our valuable partnership. AIIB will continue aligning its commitments with the government’s priorities, with the bank serving as a catalyst to India’s continued development.” On her part, Laurel Ostfield, Director General & Company Spokesperson, AIIB, shares, “So far we have invested $3 billion in India and we continue to see that grow. We have over a billion dollars in our pipeline for the country. The infrastructure need is huge here, India is our second largest shareholder and we will continue to invest in here.”   As part of its firm commitment to financing sustainable infrastructure, in October, the bank also approved a loan of $75 million to Tata Cleantech Capital (TLLC), a leading financier of renewable energy in India. The Tata Cleantech Sustainable Infrastructure On-Lending Facility project aims at increasing private capital investment in renewable energy, power transmission and water infrastructure. The project will increase the provision of affordable and clean power, reduce greenhouse emissions and expand the power’s network reach and capacity. Under the Paris Agreement, the Government of India plans to reduce the country’s carbon intensity by 30-35 per cent of 2005 levels.AIIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, the bank began operations in January 2016 and has now grown to 100 approved members worldwide.To date, AIIB, which commenced operations in India in 2016, has contributed to 13 projects to assist its second largest shareholder develop infrastructure and services in transport, energy, water and finance.- SHRIYAL SETHUMADHAVANIn the picture (L-R): Laurel Ostfield, Director General & Company Spokesperson, AIIB, and DJ Pandian, Vice President & Chief Investment Officer, AIIB

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code