Context: Recently, the President of the Asian Development Bank was on a three-day visit to India. He announced a $10 billion investment plan to support India's urban transformation. This aims to help the country achieve its vision of Viksit Bharat (Developed India) by 2047.
Relevance of the Topic: Prelims: About Asian Development Bank; Urban Challenge Fund.
Recognising that cities are engines of economic growth, the plan comes at a crucial time as India’s urban population is expected to exceed 40% by 2030.
Role of Asian Development Bank in India’s Urban Transformation:
- Over the past decade, ADB has invested $4 billion in metro and Regional Rapid Transit System (RRTS) projects across eight cities- including Delhi-Meerut, Mumbai, Nagpur, Chennai, and Bengaluru. This aims to reduce congestion, lower emissions, and improve mobility especially for persons with disabilities.
- ADB’s active urban portfolio currently includes 27 loans worth $5.15 billion.
Key Highlights of ADB Urban Transformation Plan:
- Vision and Strategy: ADB will mobilise capital, accelerate delivery and scale solutions that keep India’s urban economy moving on the road to Viksit Bharat @2047.
- The $10 billion investment plan includes sovereign loans, private sector financing, and third-party capital.
- The initiative is anchored by India’s flagship Urban Challenge Fund (UCF), which ADB is supporting to attract private investment in urban infrastructure.
- ADB has completed analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India. ADB is also committing $3 million in technical assistance to design bankable projects and strengthen the capacity of States and urban local bodies.
- ADB will also invest in skill development through the National Industrial Training Institute Upgradation Programme to boost the manufacturing sector, catalyse private sector growth and create quality jobs.
About Asian Development Bank:
- Established in 1996.
- Leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific.
- ADB supports its members and partners through the provision of loans, grants, and equity investments aimed at advancing social and economic development.
- ADB provides its members with the knowledge and expertise to tackle challenges facing our world, such as climate change, water security, inequality and poverty.
- Members: ADB is owned by 69 members- 50 from the Asia region. India is one of the founding members of the ADB and and the bank’s fourth-largest shareholder.
- Two largest shareholders of ADB are Japan and the United States, each holding approximately 15.6% of the total shares. Other significant shareholders include the People's Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Headquarters: Manila, Philippines.