The Government of India has signed a USD 500 million loan to support green and sustainable infrastructure projects aligned with the country’s climate commitments with the Asian Development Bank (ADB).
The ADB loan, with a sovereign guarantee, will be extended to the India Infrastructure Finance Company Limited (IIFCL).
The project will build the institutional capacity of IIFCL to integrate green and best practices into the infrastructure projects.
A sustainability unit and an environmental sustainability framework and scoring method to assess the sustainability rating of the projects will also be established.
Juhi Mukherjee Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the Government of India, and
Mio Oka, Country Director for ADB, who was also the signing authority of the deal said, “ADB financing will help IIFCL provide long-term capital for infrastructure projects focusing on connectivity and energy transition as well as under-resourced sectors like urban projects, education, and health care.”
Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, was the signing authority for the Government of India.
Recently, India and ADB had signed a landmark $350 million policy-based loan under the second subprogramme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme.
The SMILE programme, a flagship policy-based initiative, adopts a comprehensive approach to logistics reforms. Spanning two sub programmes, it is designed to enhance the competitiveness of India’s manufacturing sector and strengthen the resilience of supply chains.