SBI, KfW sign agreement for energy-efficient housing programme in India:
State Bank of India (SBI) has signed a loan agreement with KfW, the German development bank, worth $277 million on 16 December 2019. The arrangement of the loan and the grant facilities was facilitated by SBI`s investment banking subsidiary SBI Capital Markets Ltd.
Agreement:
♦ The aim of the agreement was to establish an energy-efficient housing programme in India.
♦ The facility was signed after an agreement on financial cooperation between the two governments in October 2019.
♦ The programme will be a part of Indo-German Development Cooperation which is guided by the 2030 Agenda for Sustainable Development.
♦ Under the programme, the builders and the home buyers will be financed to develop and purchase energy-efficient residential projects that achieve at least 25% energy savings in comparison to standard reference buildings.
♦ The programme is expected to contribute to India`s policy framework towards energy conservation in the residential building sector and a reduction in greenhouse gas (GHG) emissions.
♦ KfW has also announced to extend a grant of 1.5 million euros to SBI as a technical assistance package.
♦ These funds will be used to support SBI in the preparation, implementation, and monitoring of the programme.
♦ It will also invest a grant of 10 million euros to provided for incentivizing builders to develop housing projects that achieve significantly higher levels of energy savings vis-a-vis standard reference buildings, which is at least 40% savings.
ADB, India signed loan agreement for PPP to upgrade Madhya Pradesh roads:
The Asian Development Bank (ADB) and the Government of India signed a $490 million loan for public-private partnership (PPP) projects in the state of Madhya Pradesh. It was signed by Shri Sameer Kumar Khare, Additional Secretary of Fund Bank and ADB, Department of Economic Affairs, Ministry of Finance, and Mr. Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.
Agreement highlights:
♦ It aims to upgrade about 1,600 km of state highways and major district roads (MDRs) from single-lane to two-lane widths in the state.
♦ An additional investment of $286 million will be mobilized through private sector participation under the PPP modality.
♦ As the major district roads and state highways provide a crucial link between rural roads and national highways, it is necessary to upgrade the roads.
♦ These roads will improve rural and peri-urban connectivity in the state
♦ It will also improve access to markets and better services.
♦ The project includes up-gradation of 750 km of state highways and 850 km of MDRs to two-lane and all-weather standards with road safety features.
♦ It also includes developing an e-maintenance system that can record defects or required maintenance, along with a training program to develop capacity on contract implementation and project finance in the Madhya Pradesh Road Development Corporation.
♦ ADB has provided the Madhya Pradesh state government with five loans since 2002. It intended to develop that state`s road network, improving about 7,300 km of roads or about 11% of the total network.