Government of India signed its first loan agreement with the New Development Bank (NDB)

Government of India signed its first loan agreement with the New Development Bank (NDB)

Government of India signed its first loan agreement with the New Development Bank (NDB) on March 30 for $350 million to be used in first project that will be financed by the NDB in India — Madhya Pradesh Major District Roads Upgrade Project.

The Loan Agreement was signed by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance of India and Mr. Xian Zhu, NDB Vice President, Chief Operations Officer in New Delhi, India.

The Project will result in reconstruction and rehabilitation of approx. 1,500 km of roads to improve connectivity of the interior regions of the state with the national and state highway networks, with a focus on all-weather road availability and improved road maintenance and asset management.

It will foster inclusive economic growth through increased incomes as a result of improved connectivity and access to markets for interior regions of the state.

The project implementation is 5 years. Government of Madhya Pradesh and the MP Road Development Corporation Ltd. (MPRDC) are the implementing agencies.

NDB also proposed to raise USD 300 to 500 million through ‘Masala Bonds’ and increase its exposure to infrastructure projects in India to around $600-700 million during the year 2017. Masala Bonds refer to rupee-denominated debt instruments which are raised in overseas markets.

The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. NDB is headquartered in Shanghai, China.  The president of NDB is KV Kamath.

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