Sitharaman encouraged NDB to facilitate private sector participation
India is going to set up a new Development Financial Institution (DFI) with initial paid-up capital of around US$3 billion with a lending target of US$69 billion in next three years, Finance Minister Nirmala Sitharaman announced on 30 Mar 2021 at the 6th Annual Meeting of Board of Governors of New Development Bank (NDB) through video-conference from New Delhi.
She also suggested NDB to develop a synergistic relationship with these institutions that share its development priorities to achieve greater results.
NDB has so far approved 18 projects of India for an amount of US$6,924 million.
The Indian Minister encouraged the NDB to facilitate private sector participation, explore more innovative financing structures, discover co-financing opportunities with other MDBs, develop a pipeline of bankable projects, and promote environmental and social safeguards to enhance the sustainability of infrastructure, etc.
Sitharaman highlighted NDB’s role in countercyclical lending through a US$10 billion Emergency Assistance Programme for supporting the member countries in fighting the COVID pandemic.
She also stressed the need for NDB to maintain and improve upon the ratings assigned by international rating agencies through adequate capitalisation, high quality governance and prudent management.
The meeting was also attended by Governors and Alternate Governors of NDB member countries Brazil, China, Russia and South Africa.
NDB, a multilateral development bank was set up by the BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014 with the objective of mobilizing resources for infrastructure and sustainable development projects in the BRICS as well as other EMDCs of the world. The Bank has been operationalised in 2015, with its Headquarters in Shanghai, China. #projects #tenders #investment #banking #infrastructure /fiinews.com
