May 1, 2019
ADB is discussing funding for the expansion of metrorail in Bengaluru and Chennai, as well as for the co-financing of metro projects in Bhopal and Indore
India has emerged as the leading recipient of funding from ADB, and received sovereign funding commitments worth around US$3 billion during 2018
On the US$4.3 billion Delhi-Meerut rapid rail project, ADB said that it would partner with other financiers such as Asian Infrastructure Investment Bank
The bank has indicated that India will receive sovereign loans worth over US$3 billion in 2019; It is prioritizing transportation and logistics projects in India
The Asian Development Bank (ADB) has given a preliminary approval for the funding of five separate rail projects around India, according to a report by the Press Trust of India, citing ADB’s Director General for South Asia, Hun Kim. The projects include a US$4.3 billion rapid-rail corridor between Delhi and Meerut, as well as four different urban metrorail projects. The regional development bank has been involved in the development of a variety of infrastructure and transportation projects around India that have helped the nation’s socio-economic upliftment. India has emerged as the leading recipient of funding from ADB, and received sovereign funding commitments worth around US$3 billion in 2018.
ADB said that it was discussing funding for the expansion of metrorail in Bengaluru and Chennai, two of India’s largest urban centres. Mr Kim added that ADB was also in talks with other multilateral bodies for the co-financing of metro projects for Bhopal and Indore in Madhya Pradesh. ADB has so far financed the Jaipur metro project in Rajasthan and the expansion of the Mumbai metro. On the rapid rail project that connects Delhi with Meerut in Uttar Pradesh, ADB said that it would partner with other financiers such as the Asian Infrastructure Investment Bank. When completed, the 82-km stretch will be covered in less than an hour. Apart from connectivity, ADB is prioritising logistics projects around India.
India had received 25 per cent of total loans approved by ADB in 2018. The bank has indicated that India will receive sovereign loans worth more than US$3 billion during 2019. The Philippines-based ADB wants to continue supporting projects related to rural connectivity, water and sanitation, urban infrastructure, skill development, among others, around India. During 2018, ADB had committed a total of US$21.6 billion in loans, grants and investments. This was 10 per cent higher than 2017, and exceeded the target of US$19.7 billion. While picking projects for funding, ADB balances projects that offer good returns with developments that seek to alleviate larger socio-economic and environmental challenges.