China-based Asian Infrastructure Investment Bank (AIIB) has approved $1.5 billion in loans to India for infrastructure-related projects in 2018. The funds will be used for investment in India’s energy, roads and urban development projects. It also includes $200 million commitment to India’s National Investment and Infrastructure Fund (NIIF) to spend on roads, housing and urban development. AIIB will let the Indian government decide how to use that money.
Asian Infrastructure Investment Bank (AIIB)
AIIB is a multilateral development bank initiated by China. Its purpose is to provide finance to infrastructure development and regional connectivity projects in the Asia-Pacific region. It was officially established in December 2015 and opened for business in January 2016. It is headquartered in Beijing.
Its goals are to boost economic development in Asia-Pacific region, provide infrastructure, and promote regional cooperation and partnership. It prioritises investment in energy, power generation, transport, rural infrastructure, environmental protection and logistics in Asia.
So far it has 84 members including India. It has an authorised capital of US $100 billion. China is the largest shareholder of AIIB with 26.06% voting shares. India is the second largest shareholder with 7.5% followed by Russia 5.93% and Germany with 4.5%.