India may get $ 1.2 bn loan from ADB

India may get $ 1.2 bn loan from ADB

NEW DELHI, SEP 25: India is likely to get a $1.2 billion loan from the Asian Development Bank this year as part of the International Financial Institution's strategy to raise its assistance to projects in the country in the next three years.

The Bank's intention was conveyed to Finance Minister Yashwant Sinha when he met ADB President Tadao Chino in Prague yesterday, an official press release said here today.

During the meeting, Sinha urged ADB to allow access to India to the concessional Asian Development Fund for poverty reduction programmes. He also wanted the ordinary capital resource charges to be rationalised as it caused hardships to countries like India that borrow from this window.

Sinha said the interest of borrowers, the members and donors should be kept in view while developing the long term strategy of ADB. The Bank has an important role to play in supporting the government's initiative for poverty reduction in India and other developing countries.

Responding to Sinha, ADB President said the Bank's endeavour would be to provide loans to India on reasonable terms.