$700 million ADB loan for infra project
The Government of India and the Asian Development Bank signed two loan agreements in New Delhi recently. The agreements, relating to the Second India Infrastructure Project Financing Facility (Project-1) and Khadi Reform and Development Programme, were signed by Dr. Anup K. Pujari, Joint Secretary, Ministry of Finance, and Ms Lesley B. Lahm, Officer-in-Charge, India Resident Mission, ADB.
Under the Second India Infrastructure Project Financing Facility (Project-1), ADB has given a $700-million loan for Second India Infrastructure Project Financing Facility (Project-1) is second in a series of loans by ADB to India Infrastructure Finance Company Ltd to support the Government's infrastructure development agenda through enhancing the availability of the long-term funds for infrastructure financing. IIFCL will provide funds to private sector entities at commercial terms with over 20-year maturity for infrastructure projects in the PPP mode. The period of utilisation of this loan will be five years in three tranches. The first tranche will be $210 million. IIFCL will be the executing agency. Earlier, in 2007, ADB had approved a loan of $500 million.
Khadi reform programme
An agreement for a loan of $150 million for Khadi Reform and Development Programme will be released in four tranches, over a period of three years. The first tranche will be $30 million. The Union ministry of micro, small & medium enterprises will be the executing agency and KVIC will be implementing agency.
The ADB loan will be utilised for implementing a comprehensive khadi reform programme to revitalise the sector through a series of policy, legal and institutional framework. The programme will promote and market khadi by establishing a "Khadi Mark" to authenticate product quality and also help build awareness and popularity of khadi. The reform agenda includes measures for dealing with the high cost of inputs, restructuring of production and cost chart, conversion of six sliver plants and four sales outlets in PPP mode, in addition to setting up a marketing organisation. A $2 million technical assistance (TA) will also be provided to support the implementation of the programme.
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