ADB Loans $500 Million to India for Sustainable Infrastructure Projects

The Asian Development Bank (ADB) and the Indian government signed a $500 million loan agreement on December 20, 2024, to fund climate-friendly infrastructure projects. The loan, which comes with a sovereign guarantee, will be used to support green initiatives in areas including urban development, energy transition, healthcare, and education through the India Infrastructure Finance Company Limited (IIFCL). 

This partnership between India and ADB strengthens the country's commitment to net-zero emissions, which places a strong emphasis on long-term investment in ecologically sustainable infrastructure.

ADB Gives 500 USD to India

This loan's main goal is to enable IIFCL to include environmentally friendly practices in the construction of infrastructure. By concentrating on areas that are vital to the country's development, such as energy, healthcare, and connectivity, the loan will guarantee that projects are not only financially feasible but also ecologically sustainable, reducing the carbon impact of major construction projects.

Enhancing Climate-friendly Infrastructure in India

The creation of a specific sustainability unit within IIFCL is a key component of the agreement. In order to ensure compliance with green standards, this unit will establish and implement an environmental sustainability framework and a scoring methodology to evaluate the sustainability ratings of infrastructure projects. By taking this action, IIFCL will increase its institutional capacity to satisfy India's growing need for climate-aligned infrastructure.

India’s Aim towards Net Zero Carbon Emission

In addition to filling gaps in under-resourced sectors, the loan will assist IIFCL in providing long-term finance for infrastructure projects, according to Mio Oka, ADB's Country Director. ADB is assisting India's shift to a green economy by enhancing IIFCL's operational skills and encouraging innovation in financing and sustainable development. This partnership supports India’s climate goals and helps the country move closer to its net-zero target.

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