India asks WB and MDBs to ensure infra financing

India today asked World Bank and other Multilateral Development Banks to create special windows for ensuring finance for infrastructure development which should include provision to help projects that face a sudden scarcity of funds due to volatile capital flows.

Special windows need to be created in the World Bank and other Multilateral Development Banks MDBs for ensuring finance in support of infrastructure development,including provision of finance for ongoing projects which face a sudden scarcity of funds owing to volatile capital flows, finance minister P Chidambaram said during his intervention at the G-20 meeting of finance ministers here.

Access to this window should be beyond the normal country limits,which otherwise introduce inflexibility, Chidambaram said.

The aim of such a provision should be to create mechanisms which can increase the flow of infrastructure financing at times when other investments are slowing down,he said.

We should also have a greater involvement of the IFC in infrastructure financing to help catalyse private sector flows into the sector, Chidambaram said.