The board of China’s Asian Infrastructure Investment Bank (AIIB) has approved a million dollar contract. It invests $100 million in the National Infrastructure and Investment Fund (NIIF). Finance Minister Piyush Goyal said It could be followed by a similar tranche later.
Mr. Goyal said on the sidelines of India Infrastructure Expo and ahead of the third-AIIB annual meeting that starts on Monday.
“I was given the good news that today[Sunday] the AIIB Board has approved an investment in the NIIF (National Infrastructure and Investment Fund), the first tranche of $100mn has got approved today”.
Mr. Goyal also said, “Nearly 25% of the total funds committed by AIIB have been committed for projects in India, both in the government sector and the private sector, which is a matter of great satisfaction”. AIIB to invest $100 million in infra fund.
This is the first time that India is hosting the annual meeting of AIIB. The AIIB meeting would be addressed by Prime Minister Narendra Modi on Tuesday.
China is the first largest shareholder in AIIB and India is the second. It is also the largest recipient of funds from the multilateral agency.
AIIB vice-president Danny Alexander said the multilateral bank is also interested in the fund of funds as it will lead to higher inflows into the infra sector.
Alexander further said it will not be able to comment on internal relations of member-states.
The bank has a pipeline of USD 1.9 billion in six projects and Alexander said it is interested in projects in the transport, energy, water, and waste management areas in the country given the large requirements in these sectors.
Economic affairs secretary SC Garg said there will be a leverage of 10-12 times on the original investment, which can result in up to USD 2.4 billion flowing into infrastructure projects.
Garg said the proposal to have an independent credit rating agency for the BRICS nations is on track and will be discussed at a meeting in Johannesburg next month. AIIB had 86 countries as its members.