The New Development Bank, the latest multilateral funding institution in the financial world, has sanctioned a $250-million loan for India to fund its ambitious scheme on new and renewable energy, a top finance ministry official has said.
“Participated in meetings of BRICS (Brazil, Russia, India, China and South Africa) finance ministers and Board of Governors of the New Development Bank. Major policy issues discussed,” India’s Secretary for Economic Affairs Shaktikanta Das tweeted.
“New Development Bank sanctioned four loans, including a loan of $250 million for a renewable energy scheme in India. Good beginning,” Das said after the meeting that was chaired by Finance Minister Arun Jaitley here.
This, according to officials, is in the area of solar energy and is also the first such loan from the development financial institution.
A statement from the Indian side later said the multi-tranche, $250-million loan will be given to Canara bank to, in turn, lend to renewable energy projects. “The projects will result in generation of 500 MW of renewal energy and savings of about 800,000 tonnes of carbon emissions,” the statement said.
In total, $811 million loans have been approved for projects in India, China, Brazil and South Africa.
Now into its second year, the New Development Bank, with noted Indian banker K.V. Kamath as president, was formed by the BRICS leadership to fund infrastructure projects in emerging economies, as also to meet the aspirations of hundreds of millions of people through sustainable development.
The BRICS finance ministers and central bank governors’ engagement here was on the margins of the World Bank-International Monetary Fund Spring meetings. Besides Das, Jaitley’s delegation includes Reserve Bank of India Governor Raghuram Rajan and Chief Economic Advisor Arvind Subramanian.