According to a recent news, to take interest in Indian infra projects The Asian Infrastructure Investment Bank (AIIB) is willing to invest USD 200 million in a fund which is set up by India itself.
Economic affairs secretary SC Garg said that “there will be a purchase that will be 10-12 times on the original investment and can result up to USD 2.4 billion flowing into infrastructure projects”.
“Talking about future investments the AIIB is likely to invest USD 100 now and USD 100 million in the time to come. This total of USD 200-million will flow into the National Investment & Infrastructure Fund(NIIF)”, said Garg to the reporters on the eve of the AIIB’s annual summit. On Tuesday, Prime Minister Narendra Modi will address the first ever held annual summit of AIIB as a host.
“With such kind of a vehicle being utilized, it will

be possible to raise the investment in infrastructure to a large multiple,” Garg added. Garg even pointed out that the investment made by the Abu Dhabi Investment Authority was also of USD 250 million only when he was asked that if the investment quantum is low, given that the projected corpus of the NIIF is USD 6 billion.
Regarding this AIIB vice-president Danny Alexander shared his vies and said that “the multilateral banks are also interested in the fund of funds as these may result in higher inflows into the infra sector.
Garg further said that AIIB has received a proposal from the govt to fund USD 475 million for the Mumbai Urban Transport Project- III, though the project has already been approved in principle.
Garg was asked whether the bank, which is 31 per cent owned by China, will consider lending the projects under China’s mega Belt Road Initiative, hearing this Garg gave a direct answer and said that “the bank is a govt organisation that invests in projects according to board policies which are decided by the member-states”.
Regarding this Garg further said that ” nobody should think that AIIB is controlled by a member-country (China) and said that the AIIB is as much a Chinese bank as the World Bank is American”. The same was underlined by Alexander as well. On a question regarding India banning Chinese companies, Garg said that ” the Northern neighbor companies are always welcomed for the investments, but regarding security concerns and not meeting local procurement norms under the initiatives to push local manufacturing”.