New Development Bank Officials Discuss Funding For R&B With YS Jagan

Amaravati: Officials of the New Development Bank met Andhra Pradesh Chief Minister YS Jagan Mohan Reddy at his residence in Tadepalli on Thursday.

New Development Bank Vice-President and Cooperation Officer Xian Zhu, along with project finance officer Ninad Rajpurkar discussed various proposals related to funds with the Chief Minister.

They informed him that the New Development Bank Board would soon approve the loan proposal of Rs 6000 crore to the State. The loan amount would be used for various R and B works to facilitate new roads and other R and B projects in the State.

It is said that the State would invest 30 percent of the amount and the NDB would sanction 70 percent of the loan amount on the condition that the State would be clear the loan in 32 years.

YS Jagan Mohan Reddy urged the Bank officials to also invest in development of schools, hospitals, drinking water projects, which the Government has embarked upon in addition to the construction of new roads in the State.

The State Government plans to allot RS 25,000 crore for these projects. The New Development Bank, formerly referred to as the BRICS Development Bank, was established by the BRICS states - Brazil,Russia, India ,China and South Africa to mobilize resources for infrastructure and sustainable development projects in these nations.

It may be recollected Finance Minister Nirmala Sitharaman was asked about the status of proposals for sanction of Externally-Aided Projects(EAPs) in Andhra Pradesh during the last three years from April 2016 -March 2019 in the Rajya Sabha Question Hour in July.

She said that five EAPs were on in Andhra Pradesh and proposals for sanction of some other projects were pending with the World Bank, New Development Bank (NDB) and Asian Infrastructure Investment Bank (AIIB).

Some other projects listed as ‘ongoing’ and one of it was the Andhra Pradesh Rural Road connectivity to unconnected habitations of 250+ population (Project-1) for which USD 666 million agreement was signed on February 25, 2019. The other one is AP Urban Water Supply and Septage management Improvement Project worth USD 570 million, but disbursement is yet to be started.

She said the proposal for AP Rural Connectivity (Roads & Bridges) project worth USD 457 million has been submitted to the NDB and the NDB Mission appraisal was underway.

Till date the Bank has sanctioned loans to the amount of RS 75,000 crore out of which RS 25,000 crore was invested in India.

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