AIIB To Step Up Infra Lending In India

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The Beijing-based multilateral funding agency AIIB is looking to provide loans worth $3 billion for various large infrastructure projects, including Delhi and Meerut Rapid Rail, Mumbai Metro Rail and Chennai Peripheral Ring Road project, over the next 12 months.

India is the largest borrower, which accounts for 25 percent of the total lending by Asian Infrastructure Investment Bank (AIIB). As of July, AIIB has approved up to $19.6 billion for 87 projects in 24 economies. Since its inception in 2016, AIIB has approved loans to the tune of $4.3 billion across 17 projects in India.

The Infra projects worth $4.5-5 billion are there in the pipeline and AIIB plans to approve projects worth $3 billion in one year.

The projects that are being considered for financing are Delhi-Meerut rapid rail corridor ($500 million), Haryana Bypass Link Railway ($400 million), Mumbai Metro Line V ($350 million) and Mumbai Urban Transport Project ($500 million).

In Maharashtra alone, three projects of about $1.2 billion are under consideration, three road projects of Tamil Nadu including Chennai Peripheral Ring Road project worth $1.1 billion are at different stages of approval.