New Delhi, Jan. 22: The Asian Development Bank (ADB) said today it will provide Rs 40,000 crore as loan assistance to India over the next four years. Of this, 70 per cent will be earmarked for infrastructure projects, including road and rail networks and the power sector.
The institution currently provides around loans worth Rs 5,000 crore to the country every year. Yoshihiro Isawaki, director general (South Asia) of the Manila-based financial institution, said the remaining 30 per cent of the funds will be used to finance urban infrastructure projects, agriculture, rural development and the financial sector.
The bank plans to raise Rs 500 crore from the Indian debt market.
Iwasaki, who was speaking to the reporters after a meeting with finance ministry officials, said the institution had recently received the go-ahead from both the Reserve Bank of Indian and finance ministry to issue bonds.
“We have received an in-principal clearance from the finance ministry to float bonds,” a senior ADB official said. “The bonds will have a tenure of 5-7 years and will be used to fund private sector infrastructure projects.”