The Asian Development Bank is set to lend India $500 million to finance sustainable infrastructure projects.

The Government of India and the Asian Development Bank (ADB) have signed a loan agreement worth USD 500 million (approximately Rs 4,250 crore) to support green and sustainable infrastructure projects in India. The loan, with a sovereign guarantee, will be extended to the India Infrastructure Finance Company Ltd (IIFCL). The ADB loan aims to help IIFCL provide long-term capital for infrastructure projects focused on connectivity, energy transition, and under-resourced sectors like urban development, education, and healthcare. To meet India’s net-zero commitments, private capital investment is required, and innovative financing platforms and risk-mitigation instruments are needed to address sector risks and market asymmetries. The project will build IIFCL’s institutional capacity to integrate green and best practices into infrastructure projects, establish a sustainability unit, and develop an environmental sustainability framework. This will enable IIFCL to leverage private sector resources and expand its product offerings for institutional investors.