NDB Loan to India | 20 Nov 2020

Why in News

Recently, a 500-million dollar loan agreement was signed between the Union government, the Ministry of Housing and Urban Affairs, National Capital Region (NCR) Transport Corporation Limited and the New Development Bank (NDB) for the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS).

Key Points

  • Delhi-Ghaziabad-Meerut Regional Rapid Transit System.
    • It is an 82.15 km long, under-construction, semi-high speed rail corridor connecting Delhi-Ghaziabad-Meerut.
    • It is one of the three rapid-rail corridors planned under Phase-I of Regional Rapid Transport System (RRTS) project of National Capital Region Transport Corporation (NCRTC).
    • Benefits:
      • The Project will provide a fast, reliable, safe and comfortable public transport system in the NCR.
      • The project will serve as a demonstration for developing high-capacity rapid urban transit corridors in other urban areas of India.
      • High-speed connectivity will result in balanced economic development across the region, leading to economic benefits to all strata of society and many nodes of development rather than all economic activity happening at one place.
      • It will help in reducing traffic congestion and total emissions from the transport sector in NCR.
  • Other Contributors: The total project cost is estimated at 3,749 million dollars, which will be financed by the NDB, Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), Japan Fund for Poverty Reduction, government and other sources.

New Development Bank

  • It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
  • It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
  • It is headquartered at Shanghai, China.
  • In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the United Nations.