India’s Dinesh Sharma on 17 January 2016 was elected to the 12-member board of directors of the China-sponsored Asian Infrastructure Investment Bank (AIIB). A secret ballot for the post was held on 16 January 2016.
It is the first Board of Directors of AIIB in which 57 nations are founding members including India.
The inaugural meeting of the board of the governors of the AIIB was held in Beijing after its formal launch. The meeting approved by-laws, rules and codes of conduct for the bank. Union Finance Minister of India Arun Jaitley is the designated governor of the AIIB from the country. However, he was represented by Sharma at the meeting. Sharma is currently serving as the Additional Secretary of Ministry of Finance.
AIIB holds authorised capital of 100 billion US dollars and subscribed capital of 50 billion US dollars. It will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
China is the largest shareholder with 26.06 percent voting shares. India is the second largest shareholder with 7.5 percent followed by Russia with 5.93 percent and Germany with 4.5 percent.
On 16 January 2016, Chinese President Xi Jinping launched AIIB, which is seen as a rival to the US-led World Bank, in Beijing.
Despite opposition from Washington, US allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the AIIB in recognition of China's growing economic influence.
About Asian Infrastructure Investment Bank
• The Asian Infrastructure Investment Bank is an international financial institution that aims to support the building of infrastructure in the Asia-Pacific region.
• The bank was proposed as an initiative by the Government of China, supported by 37 regional and 20 non-regional Prospective Founding Members, all of which have signed the Articles of Agreement that form the legal basis for the proposed bank.
• The capital of the bank is 100 billion US dollars, which is equivalent to two-third of the capital of the Asian Development Bank and about half that of the World Bank.
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Who: Dinesh Sharma
When: 17 January 2016