Mumbai: Union finance minister Piyush Goyal said the government is looking forward to an investment of $2.4 billion in nine projects from Asian Infrastructure Investment Bank (AIIB) over and above the $1.4 billion commitment already received for seven projects.
AIIB has focused its investment in India on lending to rural infra, energy and power, environmental protection, transportation and telecommunication, water supply and sanitation and urban development and logistics.
“It is a matter of great pride that India is the largest recipient of the $4.2 billion funds disbursed by it,” the minister said.
Earlier speaking at a panel discussion on ‘Mobilising finance for infrastructure’, Mr Goyal said an investment of $4.5 trillion would be needed over the next decade for creation of infrastructure.
While cost of raising such a massive amount would be a challenge, he however added that it will not be deterrence for infra creation.
On Sunday, AIIB approved an equity investment of $100 million in India’s NIIF Fund of Funds and is also considering a further investment of $100 million as part of Phase II for the final closing, which would bring the bank’s total commitment to $200 million.
“With AIIB’s investment in the NIIF, we will help pool commitments from long-term investors such as multilateral institutions, sovereign wealth funds, pension funds and insurance companies—within and outside India—to make investments in the country’s infrastructure sector,” said Dong-Ik Lee, director general of investment operations, AIIB.