The first agreement was relating to Second India Infrastructure Project Financing Facility (Project-1).
This agreement for US$ 700 million Loan is for Second India Infrastructure Project Financing Facility (Project-1) and is second in a series of loans by ADB to IIFCL 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 public private partnership (PPP) mode. This Facility will enable IIFCL to further the ongoing work of IIFCL in supporting the PPP projects. The period of utilization of this loan will be 5 years for three tranches. Earlier Facility for an amount of US $ 500 million was approved in 2007 by ADB.
The loan size is US$ 700 million, to be released in three tranches, over a period of three years. The 1st tranche will be US $ 210million. India Infrastructure Finance Company Ltd (IIFCL) will be the Executing Agency.
The second agreement was relating to Khadi Reform and Development Program.
Under this agreement, a loan of US $150 million for Khadi Reform and Development Program will be released in four tranches, over a period of three years. The 1st Tranche will be US$ 30 million. Ministry of Micro, Small & Medium Enterprises (MSME) will be the Executing Agency and KVIC will be Implementing Agency.
The external financial assistance from ADB to KVIC will be utilized for implementing a comprehensive Khadi Reform Programme to revitalize the sector through a series of policy, legal and institutional framework. The program 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 6 Sliver Plants & 4 Sales Outlets in PPP mode, in addition to setting up a Marketing Organization.
A US$ 2 million Technical Assistance (TA) will also be provided to support the implementation of the program.#
India Signs two loan agreements with ADB
Special Correspondent - 2009-12-22 11:37
New Delhi: The Government of India and the Asian Development Bank (ADB) signed two loan agreements, here today. These were signed by Dr. Anup K. Pujari, Joint Secretary, Ministry of Finance on behalf of the Government of India and Ms. Lesley B. Lahm, Officer-in-Charge, India Resident Mission, Asian Development Bank (ADB) on behalf of ADB.