BRICS bank approves $400 million loans for India, Russia

BEIJING: The Shanghai-based BRICS New Development Bank (NDB) has approved two infrastructure and sustainable development projects in India and Russia with loans of $400 million.

The loans will be used to rehabilitate the Indira Gandhi canal system in India and to build a toll transport corridor connecting Ufa city centre to the M-5 federal highway in Russia.

"The NDB was established to mobilise resources for infrastructure and sustainable development in BRICS and other emerging economies and developing countries, and the two projects approved today are fully in line with the bank's mandate and national development plans of our member countries," NDB President K V Kamath was quoted as saying by state-run Xinhua news agency.

The NDB was set up with an initial authorised capital of $100 billion after leaders of Brazil, Russia, India, China, and South Africa (BRICS) agreed on its establishment during the 6th BRICS Summit in Fortaleza, Brazil, in 2014. The bank officially opened in 2015.

NDB had approved seven projects in 2016 with a total worth of $1.5 billion.

The bank said sustainable infrastructure development will be the primary emphasis of its operations in the next five years.