AIIB approves $356.67 million loan for Chennai metro

NEW DELHI: Asian Infrastructure Investment Bank (AIIB) has approved a fund of US$ 356.67 million for the expansion of the Chennai metro rail system. After this approval, the total financing of the bank for various projects in India has reached US$ 6.7 billion, making India the largest beneficiary of the bank.

China is the largest shareholder of the bank with 26.06% voting rights. DJ Pandian, Vice President, Investment Operations, AIIB, said that the Chennai project includes the construction of a new corridor in Chennai’s metro network as part of its Metro Rail Phase 2.

After this, the Bank has approved a total of 28 projects in India which amounts to a total of US$ 6.7 billion, in which energy and transport sector got the maximum amount of financing, Pandian added. After China, India is the second largest shareholder of the bank and is also the largest beneficiary in terms of approvals.

Besides funds for infrastructure, the bank has also released US$ 1.75 billion for India in terms of COVID-19 relief budget support. Pandian said that the Chennai project is aligned with AIIB’s mission to assist high-quality and sustainable infrastructure. The project will have solar panels on the rooftop of elevated stations as well as dedicated spaces for bicycles and green vehicles including signage to raise environmental awareness.

Pandian added that the project also integrates climate change resilience features in order to reduce the vulnerability to climate-related events. Women will also benefit from the project as they will have access to a safer and convenient mode of public transport.