Three multilateral banks approach India to be on board

NEW DELHI: Three multilateral development banks have approached the Indian government urging New Delhi to become a shareholder in these entities as firms and financial institutions from across the globe eye the country's infrastructure projects.

"We have received requests from the European Bank for Reconstruction and Development (EBRD), the Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB) to become members," said a senior government official, who did not wish to be named. He said the government was evaluating the requests and will take a decision soon.

"We had asked ICRIER (Indian Council for Research on International Economic Relations) to do a study and we will examine the reports and take a decision. We have to see whether our companies can also get access to these markets," the official said.

India plays a major role in several multilateral agencies and has recently been the driving force for the New Development Bank promoted by the BRICS countries. It is also a key player in the China backed Asian Infrastructure Investment Bank (AIIB). EBRD is headed by Suma Chakrabarti, who was born in West Bengal, and sources said he has been urging India to become a shareholder of the multilateral agency for several years. The Londonheadquartered EBRD was set up in 1991 "to help build a new, post-Cold War era in Central and Eastern Europe".

It is owned by 65 countries, the European Union and the European Investment Bank. EBRD financing for private sector projects generally ranges from $5 million to $250 million, in the form of loans or equity . The average EBRD investment is $25 million.

Set up in 1959, the Washington-based IDB is a leading source of development financing for Latin America and the Caribbean. The IDB provides loans, grants, and technical assistance and conducts extensive research. The IDB was founded as a partnership between 19 Latin American countries and the US.

The CDB is a regional financial institution which was set up on October 18, 1969, in Kingston, Jamaica. China, Canada, UK, Germany and Italy are its non-regional members.