Nirmala Sitharaman urges AIIB to scale-up investments in clean energy, energy efficiency

New Delhi: Addressing the 7th annual meeting of the board of governors of Asian Infrastructure Investment Bank (AIIB), Union Finance Minister Nirmala Sitharaman urged AIIB to scale-up investments in key priority areas including clean energy and energy efficiency, disaster resilient infrastructure, social infrastructure with a special focus on education and health, and digital infrastructure. She said that this would ensure that meaningful impact is achieved and resources are not scattered in multiple areas.

Sitharaman was addressing the 7th annual meeting of the board of governors of AIIB via video conference from New Delhi on October 26.

At the annual meeting, the board of governors meet to take key decisions on important matters relating to AIIB, and its future vision. India is a founding member and the second largest shareholder in AIIB. India also has the largest project portfolio within AIIB.

FM asks AIIB to take early action on G20 report

The minister advised that the bank should not only play a catalytic role in mobilising diverse private sector resources but also explore mechanisms to augment its own resources, including taking early action on the recommendations of G20's Expert Panel's Report on the MDB's Capital Adequacy Framework (CAF).

Moreover, Sitharaman pointed out that AIIB should work towards expanding the scope of its mid-stream and upstream engagement activities such as increased technical assistance to help clients translate strategies into investment plans. She also suggested that the bank should set-up full-fledged country offices in member locations.

In conclusion, the finance minister assured AIIB of India's continued commitment to achieving its mandated mission.

'India's well-targeted policy mix has aided its growth'

The Finance Minister shared her thoughts in the Governor's Roundtable Discussion on the theme "Financing Infrastructure in a crisis-prone world". Finance Minister appreciated AIIB for its continued commitment and dedication to assist members and for providing high-quality development finance. Sitharaman stated that despite exogenous threats, India's well-targeted policy mix, accompanied by major structural reforms and sound external balance sheet, have aided its growth to remain resilient. The minister emphasised that India has embarked on the path of a self-reliant economy and therefore has been successful in mitigating the negative effects of the pandemic. Sitharaman underscored the remarkable progress India has made through its digitalisation mission, utilising technology to facilitate social protection and boost financial inclusion. Finance Minister also highlighted that Prime Minister Modi is actively leading India's climate change response efforts through various programmes such as 'Lifestyle for Environment'.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)