Business, Economy & Banking Current Affairs - 2019

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

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AIIB to invest 100 million USD in solar and wind projects in India

The Asian Infrastructure Investment Bank (AIIB) which is headquartered at Beijing expects an investment of 100 million USD in India in a year. The foreign investment is to enter India through the bank in Wind and solar projects.

AIIB approves 500 million USD for MUTP 3

  • On November 16, 2019, the bank approved a loan of 500 million USD in three suburban rail infrastructure projects.
  • The projects are being executed under MUTP-Mumbai Urban Transport Project
  • The project curbs trespass deaths by including mid-section trespasses. It is the first of its kind in the country.

AIIB Investments in India

  • AIIB has so far invested 2.9 billion USD. It amounts to 30% of the total investment
  • India is the largest borrower of AIIB.
  • The bank is planning to increase its investments in the future. It has a long-term strategy framed for the investments in India. In 2019-20, the plan is to invest around 4.5 billion USD. Next year the target is to increase the investment to 5 billion USD. The plan is to reach 10 billion USD by 2025.

AIIB Projects

The ongoing key projects of AIIB includes the following

  • 400 million USD has been invested by the bank in the rural water supply system of Karnataka
  • Around 1 billion USD is being spent on power distribution and transmission in the state of Assam.
  • 800 million USD is to be invested in Chennai Metro.

Indo-French collaboration: Largest FDI project of Indian Railways

The Indian Railways and Alstom came together in the intention of transforming the freight transportation of India. In line with the collaboration, the MELPM-Madhepura Electric Locomotive Private Limited has been established. MELPM will now manufacture 800 electric locomotives for freight services with the foreign investment of 3.5 billion Euros.

Highlights

  • The locomotives including the bogies have been redesigned
  • Under the agreement, around 10 locomotives are to be delivered by the end of 2019-20 financial year and 100 locomotives by the end of March 2021
  • A factory along with township has been set up as part of the project in Madhepura, Bihar. The factory can manufacture 120 locomotives per year.
  • More than 300 engineers from India and France are working on the project currently

Significance

  • More than 90% of the parts of the locomotives are to be manufactured in India. This is being done under Make in India initiative
  • The project under the Corporate Social Responsibility initiative will set up skill centers that will impart training to local people
  • More than 50% jobs are allocated to the locals of the region.

Benefits

As the locomotives are 100% electrified it will not only bring down operational cost but will also reduce congestion faced by the railways