Infrastructure financial institution Asian Infrastructure Investment Bank (AIIB), in which India is a founder member along with 56 other countries, is expected to be operational this month. “AIIB to become operational this month. Will be a good source of funding for infrastructure projects in India,” Economic Affairs Secretary Shaktikanta Das tweeted.
Last year, the government approved Articles of Agreement of the AIIB and paved the way for becoming member of the $100 billion multi-lateral funding agency with focus on financing infrastructure construction across Asia. The Beijing-based bank could rival World Bank, International Monetary Fund and Asian Development Bank in scaling up funding for the infrastructure projects in Asia.
With authorised capital of $100 billion and subscribed capital of $50 billion, AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare. China, India and Russia are the three largest shareholders, taking a 30.34 per cent, 8.52 per cent, 6.66 per cent stake, respectively, in the newly-formed bank.