Economy

New Development Bank to Review India Portfolio and Issue Rupee Bonds by 2024

The New Development Bank (NDB) is planning to evaluate its India project portfolio from 2015 onwards in the upcoming year, as stated by Director General Ashwani K Muthoo. This evaluation seeks to analyze the NDB’s overall engagement with India and set future priorities. The Independent Evaluation Office (IEO) of the NDB has suggested a specific country strategy for India.

To date, the NDB has approved $7.5 billion in funding for India, with $4.2 billion disbursed so far. This amount includes a $2 billion loan aimed at emergency responses to the Covid-19 pandemic. Additionally, NDB’s Vice-President and Chief Risk Officer, Anil Kishora, indicated that new approvals for rural road projects in Bihar and Gujarat are on the horizon. These upcoming initiatives will complement previously sanctioned projects, which include Metro and Regional Rapid Transit System (RRTS) developments in cities like Mumbai, Indore, and Chennai, as well as water sector projects in Rajasthan and Manipur, ecotourism initiatives in Meghalaya, and rural road projects in Madhya Pradesh and Bihar.

The IEO report highlighted that the nearly $10 billion in Covid-19 emergency loans provided by the NDB have positively impacted around 400 million people across its member countries. Specifically, the Covid-19 response efforts in India alone created 5.4 billion person-days of employment and ensured that all district hospital doctors and nurses received training that met WHO standards.

In addition, the NDB has plans to issue rupee-denominated bonds by 2024, aiming to procure 30% of its resources in local currency. This initiative is designed to reduce foreign exchange risk and streamline financing processes. Previously, the bank has raised funds using the South African rand.

In 2021, the NDB expanded its membership to include Bangladesh, Egypt, the UAE, and Uruguay.

This content was generated with AI support and reviewed by an editor.

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