India has asked New Development Bank (NDB) to focus on making a strong pipeline of projects in the infrastructure sector which can play a catalytic role in promoting inclusive growth.
“As a top-class financial institution, it (NDB) must develop a strong pipeline of projects and respond in a fast and flexible manner to further the aspirations and interests of its members,” Finance Minister Arun Jaitley said at the first Board of Governors meeting of NDB in Shanghai.
The speech was read by Joint Secretary in the Finance Ministry Raj Kumar, as Jaitley could not attend the meeting because of the ongoing Parliament session.
The board also decided that the second annual meeting of NDB will be held in India in 2017.
“True to its nomenclature, the ‘New’ Development Bank has to focus on financing demonstrable projects with innovative approaches and instruments for speedy creation of infrastructure,” he said.
He stressed that NDB should focus on energy generation projects, both renewable and non renewable, which utilise cost effective and clean technologies, transport projects and urban sector infrastructure projects.
“Investments in sustainable infrastructure play a catalytic role in anchoring a more resilient recovery, improving potential growth and fostering inclusive growth in the countries. This is also the niche area of focus of the New Development Bank,” Jaitley said.
Set up by the BRICS group of countries (Brazil, Russia, India, China and South Africa) in July 2014, NDB started operations a year later with an initial subscribed capital of USD 50 billion with total paid-in capital of USD 10 billion.
The founding members of the bank have already brought in capital of USD 1 billion as initial contribution.
NDB announced its first batch of loans on April 16, providing USD 300 million to Brazil, USD 81 million to China, USD 250 million to India and USD 180 million to South Africa.