AIIB unveils $2.2-bn India infra investment plans

Injecting a major boost to Indian infrastructure sector, the Beijing-based Asian Infrastructure Investment Bank (AIIB) has planned an investment worth over $2.2 billion in the country's infrastructure sector. The newest investment will flow into power, metro rail, urban transport, rural water supply projects in areas like Assam, Karnataka, Chennai and Mumbai, Vice-president and Chief Investment Officer DJ Pandian said. Apart from this, AIIB has also started discussions with the Indian government to fund electric vehicle charging infrastructure in the country along with the World Bank and the Asian Development Bank. The funds will be cleared shortly after state and central governments put forward their request. AIIB will start disbursing $400-million loan for strengthening electricity distribution in Assam and an equal amount in two phases for a transmission project in the north eastern state. The bank is also investing an $800-million in Chennai metro, a $400-million loan for a rural water supply system in Karnataka and also in a few road projects. India is giving a big push to renewable energy and that the bank has funded a green grid in Tamil Nadu to evacuate power generated from wind projects. The $500-million loan for the Mumbai Urban Transport Project (MUTP) will help funding construction of a four-lane road stretching 64 km between Virar and Dahanu and the move will extend the sub-urban railway service to link peripheral areas of the metropolitan city. The 20-year loan will also finance construction of a 28 km-long two-lane sub-urban rail corridor between Panvel and Karjat to cater to commuters in the area. The $75-million loan to Tata Clean-tech Capital will help mobilize private capital into renewable energy, power transmission and water infrastructure, he added.