ADB approves $500 million loan to boost India’s sustainable infrastructure
Summary
The Asian Development Bank (ADB) on Wednesday approved a $500 million loan to support Indias economic growth by promoting environmentally sustainable infrastructure.The ADB loan, with a sovereign guarantee, to India Infrastructure Finance Company Limited (IIFCL) will advance sustainable infrastructure development. IIFCL can be an anchor government investor that attracts private sector entities to join a consortium of lenders to finance these initiatives.The Financing Environmentally Sustainable Growth in Infrastructure Project will build IIFCLs institutional capacity to integrate green and best practices into infrastructure projects. However, there is a lack of sufficient funding and risk-sharing mechanisms within the local financial market for these types of projects. The country is facing a $1 trillion climate financing gap that the public sector cannot meet alone, the release said.Indias economy is one of the fastest growing in the world. ADB is strengthening support to the government in this area to ensure that Indias economic development will be inclusive and sustainable.