‘Multilateral banks playing a crucial role in supporting economic growth’

Several projects in A.P. are being funded by them, says Mekapati

The Andhra Pradesh government recently concluded an agreement with the New Development Bank (NDB) for two road projects worth $646 million.

The government is in the process of implementing the World Bank (WB)-funded Rejuvenating Watersheds for Agriculture Resilience through Innovative Development (REWARD) project in five districts of the parched Rayalaseema region and the tribal belt of Visakhapatnam district over the next six years.

Industrial corridor

The Visakhapatnam-Chennai Industrial Corridor Development Project comprised a grant and a policy-based loan amounting to $630 million, and the government was working with the WB for improving the quality and responsiveness of the public health services in the State, said Industries Minister Mekapati Goutham Reddy.

Participating in a virtual conference on ‘Business opportunities with largest sources of funding’ jointly organised by the Federations of A.P. and Telangana Chambers of Commerce and Industry on Friday, Mr. Goutham Reddy said multilateral banks were playing a crucial role in fighting poverty, supporting economic growth, and were ensuring sustainable gains in the quality of people’s lives in the developing countries.

He said India’s partnership with the multilateral banks allowed it to leverage their analytical, financial and human resources for the benefit of the country.

The Minister pointed out that India’s engagement with the WB started in 1948 with the funding of the Agricultural Machinery Project.

The WB’s lending portfolio consists of 105 operations with $27.10 billion in commitments, with the transport, water, energy and information and communications technology sectors accounting for a major chunk of the loans.

Mr. Goutham Reddy said India had started availing of Asian Development Bank (ADB) assistance in 1986, after which it committed 239 sovereign loans totalling $42.26 billion. Cumulative loan and grant disbursements to India amounted to $31.79 billion.

In 2019, the ADB committed a record $3.18 billion loan for 10 projects in infrastructure, transport, energy, urban services and agriculture sectors.

India had become a founding member of Asian Infrastructure Investment Bank (AIIB) in 2016 and holds the second largest share after China. India received $4.35 billion from AIIB, the highest for any country.

Mr. Goutham Reddy said A.P. was focused on investing in hard infrastructure such as industrial corridors, industrial parks, ports and airports, coupled with soft infrastructure such as educational facilities, health care, skill development and capacity building.

Chief Secretary Aditya Nath Das, FAPCCI president C.V. Atchut Rao and FTCCI president I. Ramakanth took part.