Nirmala Sitharaman suggested that NDB must consider developing a synergistic relationship with institutions that share its development priorities to achieve greater results
Union finance minister Nirmala Sitharaman on Tuesday urged the Brics (Brazil, Russia, India, China and South Africa)-led New Development Bank (NDB) to improve its ratings by international rating agencies through adequate capitalization, quality governance and prudent management.
At the sixth annual meeting of the board of governors of NDB held via videoconference, Sitharaman highlighted NDB’s role in countercyclical lending through a $10 billion emergency assistance programme for supporting member countries in fighting the covid pandemic.
“The finance minister encouraged the NDB to facilitate private sector participation, explore more innovative financing structures, discover co-financing opportunities with other MDBs (multilateral development banks), develop a pipeline of bankable projects, and promote environmental and social safeguards to enhance the sustainability of infrastructure," the finance ministry said in a statement.
Highlighting the role of development financial institutions (DFIs) in infrastructure financing, Sitharaman said India is going to set up a new DFI with an initial paid-up capital of around $3 billion with a lending target of $69 billion over the next three years. She also suggested that NDB must consider developing a synergistic relationship with institutions that share its development priorities to achieve greater results.
NDB was set up by BRICS in 2014 with the objective of mobilizing resources for infrastructure and sustainable development projects in BRICS, and other emerging economies.
Headquartered in Shanghai, China, NDB was operationalised in 2015, and has so far approved 18 projects in India worth $6,924 million.