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BRICS Bank to provide its first loan to India on Solar project

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The NDB which is likely to begin its operations in 2 months has decided to fund for green projects initially, with India and China in the priority list. India is likely to receive loan for its solar project in April from the NDB.

BRICS BANK

brics

  • The National Development Bank (NDB) set up by the BRICS nations was formed in July 2015 with V.Kamath as its president
  • The authorized capital of the bank is $100 billion with $50 billion –the subscribed capital being shared among the member nations(Brazil, Russia,India,China, South Korea)
  • The bank has its headquarters at Shanghai, China
  • NDB has planned to provide loans for infrastructure projects which includes green projects initially
  • The bank has proposed to lend $1.5-2 billion dollars by the end of this year
  • India and China are the first two member nations likely to get loan for green Solar projects by April from NDB
  • The bank has planned to issue loan in local currency though the default currency of the bank is US Dollar
  • The Multilateral bank has planned to raise funds in India through rupee bonds and through rupee linked bonds in overseas
  • The bank also has planned to fund projects including water projects and road projects in future
  • The NDB will induct more countries in the future raising the capital from global market

Points to note

  • India which needs around $ 1 trillion for its infrastructure projects in next five years will be the major beneficiary of NDB
  • India has submitted 3 proposals to the bank that includes Centre’s Green energy corridor project, Grid strengthening project and irrigation project in Rajasthan
  • India expected to grow at 7-7.5% is the only BRICS nation to have a better economic growth than others including China