BRICS bank approves 7 projects, India gets $1 billion Covid-19 emergency program loan

The Board of Directors of the BRICS New Development Bank (NDB approved five investment projects in India during its 29th meeting in a virtual format on December 15. Two projects were approved earlier taking the total number of investment projects to seven in India.

“At the Meeting, the board approved five investment projects with a total commitment aggregating to approximately $2.7 billion,” a press release by NDB said.

It said, “In the Intersession Period, the Board of Directors also approved two Covid-19 Emergency Program Loans of $1 billion respectively to the Federative Republic of Brazil and the Republic of India.”

The NDB was established by BRICS (Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in these countries, and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

The project approved for India is “Covid-19 Emergency Program Loan to India for Supporting Economic Recovery”. It is worth $1 billion.

“On December 11, 2020, the NDB Board approved Covid-19 Emergency Program Loan of $1 billion to the Republic of India for supporting India’s economic recovery from Covid-19. The program will support the Government of India in its efforts to contain the economic fallout of the Covid-19 pandemic and start economic recovery,” the NDB release said.

The focus of the loan is to mitigate the “adverse” economic impact on migrant workers and to increase agricultural productivity.

“The Program will support mitigating the adverse economic impact of the Covid-19 pandemic and enable economic recovery in the rural areas through natural resource management works (NRM and generation of employment opportunities for the rural poor, especially migrant workers who have returned from urban areas and have lost their livelihoods due to the Covid-19 pandemic,” said the NDB.

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“Agricultural productivity will be improved through the creation of NRM assets that promote water conservation, water harvesting and watershed management,” the BRICS bank said.

Four investment projects were approved for Brazil, which is one of the worst-affected countries due to Covid-19 pandemic. The projects approved for Brazil is aimed at supporting “socio-economic growth and development through sustainable infrastructure investments in key sectors”. Development projects were also approved for South Africa and Russia.

BRICS bank approves 7 projects, India gets $1 billion Covid-19 emergency program loan