The Government of India has signed a $500 million (approximately ₹4,250 crore) loan agreement with the Asian Development Bank (ADB) to fund sustainable infrastructure projects, aligning with the nation’s climate goals.The loan, backed by a sovereign guarantee, will be directed to the India Infrastructure Finance Company Ltd (IIFCL), according to a statement by the Ministry of Finance. The agreement was signed by Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, and Mio Oka, Country Director for ADB.
“ADB’s financing will enable IIFCL to provide long-term capital for infrastructure projects focused on connectivity, energy transition, and under-resourced areas such as urban development, education, and healthcare,” said Oka.
The initiative aims to attract significant private capital investment by addressing sector risks and market imbalances through innovative financing and risk-mitigation tools. IIFCL, as a strategic development finance institution, is well-positioned to meet these needs and facilitate India’s transition toward green infrastructure.
ADB has supported IIFCL in strengthening its operational and risk management capabilities. The project will further enhance IIFCL’s capacity to integrate green principles into infrastructure financing, including the creation of a sustainability unit, an environmental sustainability framework, and a scoring method to evaluate project sustainability.
This partnership underscores India’s commitment to achieving its net-zero targets while fostering environmentally sustainable growth. Established in 1966, ADB is dedicated to fostering sustainable development and poverty eradication across Asia and the Pacific, with 69 member nations, 49 from the region.
