Chapter 38ASIAN DEVELOPMENT BANK (ADB)
38.1 The Asian Development Bank (ADB) is a major regional financial institution and Indias subscription to the Banks capital stock is the fourth largest of all member countries after Japan, the USA and the Peoples Republic of China.
38.2 Although eligible to borrow under the criteria laid down by the Asian Development Bank, India voluntarily refrained from borrowing initially. However, in order to broad-base our resources, it was decided to commence borrowing from ADB in 1986. As on 31st December 1998 Asian Development Bank have approved 45 loans(for public sector projects) amounting to US $7205 million of which 21 loans were closed and 24 loans are ongoing. The 24 ongoing loans have a net loan amount of US $3657 million. The lending for India as on 31st December, 1998 by the ADB covered following Sectors:
Transport and Communication
Industry and Non-fuel minerals
Social Infrastructure from the Bank's Ordinary Capital Resources
38..3 The Asian Development Bank also provides technical assistance in the form of grants or loans or a combination of both, by making available the services of consultants or experts to facilitate the transfer of resources and technology to the developing member countries. ADB has approved a Technical Assistance of US$ 49.62 million to India as on 31.12.1998.
Effect of Sanctions:
38.4 Consequent on the Pokhran explosion of May, 1998, approvals for new loans by ADB were restricted to the basic human needs projects because of the policy of sanctions imposed by some of the developed member countries of the Bank. As a result of this, one loan of US $ 250 million (Rajasthan Urban Infrastructure Development) was approved by the Bank during December 1998. However disbursements against ongoing loans were not affected by these developments.
38..5 The details of loans and debt servicing payment thereof are given in Annexure I and III.