ADB commits $2.6 billion in sovereign lending to India

New Delhi: Asian Development Bank (ADB) committed $2.6 billion (about Rs 21,500 crore) in sovereign lending to India in 2023 for various projects. The fund is aimed to strengthen urban development, support industrial corridor development, promote power sector reforms, build India's climate resilience, and enhance connectivity. ADB also extended $23.53 million in technical assistance and $4.1 million in grants under the sovereign portfolio.

In addition, ADB committed over $1 billion for private sector projects during the past year, the Manila-based multi-lateral development bank said in a statement. "ADB's portfolio in 2023 supported the government's priority agenda. We will continue to focus on projects and programmes that accelerate India's structural transformation, create jobs, address infrastructure gaps, promote green growth, and foster social and economic inclusiveness while deploying smart technologies and innovations," ADB Country Director for India Mio Oka said.

In 2023, ADB approved additional funding to support India's national industrial corridor development programme to enhance its manufacturing competitiveness along with a loan for Visakhapatnam-Chennai Industrial Corridor Development, it said. Two policy-based loans were committed to support the government's urban reforms agenda at the state level and power sector reforms to facilitate the shift to renewable energy, it said.

In addition, ADB provided funding for expanding urban services in Uttarakhand, Rajasthan, and Tripura, improving road connectivity in Bihar and Madhya Pradesh, expanding Delhi-Meerut rapid rail transit corridor and boosting horticulture development in Himachal Pradesh, it said. Committed to pursue a differentiated approach for states at different stages of development, ADB prioritises projects on basic services, critical infrastructure and services, institutional strength, and private sector development through sovereign operations in low-income states, it said.

Support for more developed states focuses on transformational programmes with policy and knowledge advice, combined with non-sovereign operations, it said. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members.