New Delhi: The Asian Development Bank (ADB) plans to lend around $12 billion to India in the next five years starting in 2013, ADB country director Hun Kim said on Friday.
“ADB plans to lend around $10 billion as public lending and another $2 billion through its private lending programme,” Kim said.
ADB is currently preparing its country partnership strategy for India for 2013-17 in consultation with the finance ministry. India is ADB’s biggest client and borrows around $2 billion through the sovereign lending route and around $0.5 billion through the private lending facility.
ADB president Haruhiko Kuroda, who is currently visiting India, met finance minister P. Chidambaram on Friday. The finance ministry said in a statement that Chidambaram told the ADB chief the bank could be associated in major infrastructure projects being initiated in the country and emphasised the need for additional resources from the lender for the new initiatives.
Chidambaram also informed Kuroda that he has written to the Asian members of the G20 to strengthen the capital base of the ADB. President Kuroda agreed that there is a need to increase the capacity of ADB to mobilize more resources for infrastructure projects.
Kim said ADB is currently in talks with the debt-ridden Punjab state government for lending around $200-300 million in line with its assistance to the West Bengal government for restructuring the state’s debt.
At a press conference, Kuroda said the Reserve Bank of India (RBI) could make deeper cuts in interest rates, facilitating recovery of the economy, if inflation slows further. RBI lowered its key rate earlier this week to help shore up flagging growth. ADB is scheduled to hold its annual meeting, at which around 4,000 participants are expected, in India on 2-5 May.