Lok Sabha Question No. 435 (STARRED), answered on 2016-12-16
Subject: New Development Bank
Ministry: FINANCE
Asked by: B. SREERAMULU

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA

## STARRED QUESTION NO. *435

## TO BE ANSWERED ON FRIDAY, THE 16 TH  DECEMBER, 2016/Agrahayana 25, 1938 (Saka)

## QUESTION

## New Development Bank

## *435. SHRI B. SRIRAMULU:

## Will the Minister of FINANCE be pleased to state:

- (a) whether  the  New  Development  Bank  (NDB)  set  up  by  BRICS  countries  has approved its financing plan for 2017 including two infrastructure projects in China and India;
- (b) if so, the details thereof along with the budgetary allocation in this regard;
- (c) whether  the  Government  has  applied  to  NDB  for  grant  of  other  loans  for infrastructure projects in the country, if so, the details thereof, State/UT-wise; and
- (d) the steps taken by the Government for utilisation of NDB funds for development of infrastructure projects in the country?

## ANSWER

## MINISTER OF FINANCE (SHRI ARUN JAITLEY)

- (a) to (d): A statement is laid on the table of the House.

Statement  referred  to  in  parts  (a)  to  (d)  of  the  reply  to  the  Lok  Sabha  Starred Question No. 435 by SHRI B. SRIRAMULU regarding NEW DEVELOPMENT BANK to be answered on Friday, the 16 th December, 2016

In the 7 th meeting of Board of Directors of the New Development Bank (NDB) held on November 22, 2016, the 'Operation Work Plan' and 'Funding Plan' of the NDB for 2017 were approved, which, inter alia, target a lending of USD 2.5 billion during 2017. The NDB Board also approved the following two infrastructure projects for financing:

- i) Loan  of  USD  350  million  to  the  Government  of  India  for  the  Madhya  Pradesh Major  District  Roads  Project  to  be  implemented  by  MP  Road  Development Corporation Ltd. The project is for upgradation of approximately 1500 km of major district  roads to  improve connectivity of the interior regions of the state with the national and state highway networks.
2. ii) Loan  of  RMB  2  billion  to  People's  Republic  of  China  for  PutianPinghai  Bay Offshore Wind Power Project implemented by Fujian Investment and Development Group Co. Ltd.

Implementation of these projects will commence after the loan agreements are signed, and disbursement of loan will be on reimbursement basis.

In  addition  to  the  Madhya  Pradesh  Major  District  Roads  Project,  India  has  posed  6 projects to the NDB, details of which are as under:

|   S. No. | Project Name                                                                          | Proposed NDB Financing (In USD million)   | State/UT                                                                                                                                                             |
|----------|---------------------------------------------------------------------------------------|-------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Multi-tranche Financing Facility to Canara Bank for Renewable Energy Financing Scheme | 250.00                                    | This is a multi-tranche loan to the Canara Bank for on- lending to renewable energy projects under Renewable Energy Financing Scheme, and not specific to any State. |
|        2 | Water sector restructuring project for desert area                                    | 350.00                                    | Rajasthan                                                                                                                                                            |
|        3 | Madhya Pradesh Road development Program -II                                           | 350.00                                    | Madhya Pradesh                                                                                                                                                       |
|        4 | Madhya Pradesh Bridges development program                                            | 150.00                                    | Madhya Pradesh                                                                                                                                                       |
|        5 | Bihar MukhyaMantri Gram SamparkYojna                                                  | 841.00*                                   | Bihar                                                                                                                                                                |
|        6 | Multi village rural water supply schemes (MVRWSS)                                     | 470.00                                    | Madhya Pradesh                                                                                                                                                       |

* The loan amount is tentative and may undergo change during project preparation.

Posing of projects for financing by multilateral development banks, including the NDB, depends on viable proposals received from the sponsoring agencies, such as the State Governments and the Central Ministries. This is a continuous process. Projects posed for  NDB  financing  are  also  aligned  to  the  priority  of  the  Bank,  which  is  to  mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries.

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