The Asian Infrastructure Investment Bank (AIIB) has approved $575m loan for the Indian Government to help in easing congestion in the country’s financial hub as well as strengthen renewable energy, power transmission and water infrastructure.
The latest funding brings the AIIB’s total in-country financing in India to $2.9bn.
Of the total approved loan, $500m will be used to fast-track work on the suburban railway network in Mumbai in the Indian state of Maharashtra.
The funding will be used to a quadrupling of 64km Virar-Dahanu Road corridor to provide an extension of the suburban railway service to connect peripheral areas with Mumbai.
Additionally, the project involves the construction of a new suburban railway corridor between Panvel and Karjat localities, as well as installation of control measures on 36 priority sections of existing lines to reduce fatal accidents.
The control measures include track segregation by fencing or using reinforced concrete walls and pedestrian crossings over or under the tracks.
AIIB Vice President and Chief Investment Officer D J Pandian said: “Over the past four years, AIIB’s investments in India have grown exponentially.
“This is a clear sign of our valuable partnership. AIIB will continue aligning its commitments with the government’s priorities, with the Bank serving as a catalyst to India’s continued development.”
AIIB said it will provide a further $75m in loan for the country’s renewable industry as part of its commitment to financing sustainable infrastructure.
The loan will be used by India-based renewable energy financier Tata Cleantech Capital (TLLC) to fund the Tata Cleantech Sustainable Infrastructure On-Lending Facility project, which aims to increase private capital investment in renewable energy, power transmission and water infrastructure.
In addition to increasing the access to affordable and clean power, the project will reduce greenhouse emissions and expand the power’s network reach and capacity.
As part of the Paris Agreement, the Indian Government aims to reduce its carbon intensity by 30-35% of 2005 levels.