The $100-billion China-led multilateral lender, Asian Infrastructure Investment Bank, on Tuesday said many Indian companies both from public and private sectors have approached it for finance. Though the bank has not set any investment target for the country, it finds India “important”.
India is the second largest stakeholder in the AIIB. The purpose of the agency is to support sustainable economic development of the economy of Asia through infrastructure investment. “We have a lot of proposals from India. We have proposals both from public and private sectors in areas like energy, cities and others.
“We look forward to building up a strong investment focus in India. We see India is a very important country for our bank,” AIIB’s vice-president Danny Alexander said taking part in a roundtable discussion at Ficci.
However, as a matter of policy, AIIB would always fund projects based on merits and not bogged down by politics. “We are not planning to have a country-wise strategy or country-by-country allocations. Instead, we will be driven by the quality of the project,” he said.
Set up in December last year, the 57-member lending agency said the bank takes “very transparent decisions” in matters of funding a project based on
its “strong” governance practices.
The bank has priority areas to invest in infrastructure projects surrounding the Asian region and ensure its sustainable economic development. Alexander said the bank would also be “interested” in working on public-private-partnership (model), though it is yet to develop any kind of guidelines for such projects.
“We are looking at the PPP model on a case by case basis where we see a role for us. We have not set up any kind of investment target for India. However, there is a lot of potential to develop our business in India,” he said.
Though the US is not a member, AIIB operates in the US dollar and all its members also pay their subscription in dollar only. Alexander said the multilateral agency would look at operating in other currencies as it grows.