Foreign Investments in India Current Affairs - 2019

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India and ADB sign 91 million USD to improve water resources in Karnataka

On November 18, 2019, India and the Asian Development Bank (ADB) signed a 91 million USD agreement to improve water security of Karnataka. The loan will help to modernize the Vijayanagara Channel irrigation systems and also to increase the efficiency of Krishna river basin.

Highlights of the project

  • The Karnataka Government will strengthen the basin institutions for Integrated and Sustainable Water Resources Management Investment Programme.
  • The Programme plans to modernize about 442 kilometers of main distributaries in the Vijayanagara Channel network.
  • The programme has two project loans. It will help Karnataka water agencies to roll out efficient river basin management plans.
    • The first project will modernize the irrigation system
    • The second project will strengthen water governance

Significance

  • The programme will help to save 1,700 million cubic metres that can be used on additional 160,000 hectares of farm land
  • The project will establish 30 water user cooperative societies. This will strengthen irrigation canals of the farmers.
  • It will help to improve efficiency of 84% of state’s total water use.

Asian Development Bank

The Bank is on the foot steps of achieving prosperous, resilient, sustainable and inclusive Asia and Pacific. Its goal is to eradicate poverty. In 2018 alone, the bank provided a loan of 21.8 billion USD funding several projects in the region

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.