According to bank's website, the approved project aims to supports India’s short-term policy and institutional measures and public expenditure allocations aimed at sustaining economic activity, safeguarding social stability and strengthening resilience. India relies significantly on imported energy and agricultural inputs, including crude oil, LNG, LPG, pulses, oilseeds, and fertilizer inputs. India also faces a gap between development needs and available public resources, especially for infrastructure and climate-related investment. Growth has remained robust, but employment generation has been uneven. Agriculture still absorbs a large share of the workforce.

The situation in the Middle East may potentially affect the Indian economy through higher energy prices, risks to fuel and fertilizer supply, trade disruption, supply chain bottlenecks, and tighter global financial conditions. Higher crude prices, shipping delays, and rising fertilizer costs may increase pressure on energy affordability, food-related costs, and business conditions, particularly for exporters and firms with limited margins. India has implemented pre-emptive measures to mitigate the effect of any potential pressure arising from these developments. It has adopted short term policies to help keep fuel and food supplies flowing, support businesses and exporters, protect poorer households from higher prices, and stabilize fertilizer prices for farmers. AIIB will provide financing to support India’s pre-emptive short-term policy measures to support food, energy, and economic security for poor and vulnerable households, farmers, and small enterprises. This may also help reduce risks to ongoing infrastructure investment from fiscal reprioritization toward the aforementioned measures.

Program Approach and Focus Areas: The Program comprises three focus areas and policy measures to support trade resilience, energy security, food and rural income protection. These measures support business and export continuity, gas and cooking fuel supply, and assistance to farmers and rural households through fertilizer support and expanded employment measures. Overall, the Program is intended to support a short -term relief measures, with expected results over a two-year period. 

AIIB loan of USD 1,000 million.

Project Team Leader: Pratyush Mishra

Title: Senior Investment Officer 

Email: pratyush.mishra@aiib.org 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html