New Delhi: The Asian Development Bank (ADB) has approved a $500 million loan to support India’s economic growth through environmentally sustainable infrastructure. The sovereign-guaranteed loan will be provided to IIFCL to advance sustainable infrastructure development, an ADB press release stated.
This will help IIFCL provide long-term capital to infrastructure projects prioritizing connectivity, energy transition, urban projects, education, and healthcare. IIFCL can serve as an anchor government investor to draw private sector entities into a consortium of lenders financing these initiatives.
ADB Principal Finance Sector Specialist Sanjeev Kaushik said, “India’s economy is one of the fastest growing in the world. Critical to this process are robust infrastructure that aligns with the country’s climate commitments.”
“ADB is strengthening support to the government in this area to ensure that India’s economic development will be inclusive and sustainable,” he added.
The Financing Environmentally Sustainable Growth in Infrastructure Project builds IIFCL’s institutional capacity for green and best practices in infrastructure projects. A sustainability unit, framework, and scoring method to assess sustainability ratings will be established.
ADB’s mission is to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while eradicating extreme poverty. Founded in 1966, 69 members–49 from the region–own it.