India and Asian Development Bank Sign $500 Million Loan for Sustainable Infrastructure Projects.
New Delhi:
The Government of India and the Asian Development Bank (ADB) have signed a $500 million loan to support green and sustainable infrastructure initiatives, aligning with India’s climate commitments. The loan, secured with a sovereign guarantee, will be provided to the India Infrastructure Finance Company Limited (IIFCL).
The agreement, formalized on December 20, 2024, was signed by Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, Ministry of Finance, on behalf of the Indian government, and ADB’s Country Director, Mio Oka.
This financing aims to provide long-term capital for infrastructure projects, with a focus on energy transition, connectivity, and sectors in need, such as urban development, healthcare, and education. ADB’s support will help IIFCL enhance its operational capacity, integrating green practices and sustainability frameworks into infrastructure projects.
The initiative will also help IIFCL improve its risk management capacities, ultimately mobilizing private sector investment to meet India’s ambitious net-zero targets. A sustainability unit and an environmental rating system will be established to ensure best practices in project execution.
