Asian Development Bank will pump in an estimated $7 billion in India over a period of three years.
This is against a cumulative investment of $5.2 billion in 17 years between 1986 and 2003. The Manila-based institution will invest $2.5 billion annually in India, said Yang Dan, senior consulting services specialist, ADB.
In addition to this, ADB will extend technical assistance of $25 million. Of this, $15 million will come from ADB itself and the rest from co-financers.
The transport and communication sector will be allocated 35 per cent against 33 per cent as of December 31, 2003; 18 per cent will be invested in energy sector (12.2 per cent), 16 per cent in urban infrastructure, 11 per cent in agriculture and water management, 10 per cent in government and public resources and 11 per cent in the financial sector.
India tops the list of ADB borrowers in 2003 by getting $1.53 billion. People's Republic of China (PRC) comes second with $1.49 billion allotment and Pakistan comes third with $871 million investment by the bank. As of December 2003, ADB approved nine loans for $1.5 billion and 22 TA worth $14.7 million to India.
ADB and AMP Capital Investors, the funds management arm of the Australian financial services group AMP, recently launched a fund called Infrastructure Fund of India (TIFI) to strengthen the infrastructure sector here.
TIFI will invest in non-listed securities of companies that develop, own or operate infrastructure facilities and projects in India. TIFI may also consider investments in listed equity securities of such entities.
TIFI is expected to raise $100 million, with a cap of $125 million, from institutional investors. ADB and AMP Life are initial investors in the fund with $15 million and $30 million invested, respectively.
Infrastructure projects that are eligible to avail of this fund include power, transport (toll roads, railways, ports, and airports), telecommunications (wire-line and wireless networks) and urban facilities (water and sewage networks).
