The Government of India and the Asian Development Bank (ADB) have signed a $500 million loan agreement to support sustainable infrastructure projects. This initiative aims to advance India’s climate commitments and boost environmentally friendly development.

The loan, signed on December 20, 2024, will be extended to the India Infrastructure Finance Company Limited (IIFCL) under a sovereign guarantee. Ms. Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, Ministry of Finance, and ADB Country Director Mio Oka were the signatories for the project, titled Financing Environmentally Sustainable Growth in Infrastructure.

“This financing will enable IIFCL to offer long-term capital for projects in connectivity, energy transition, urban development, education, and healthcare,” said Ms. Oka.

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To achieve its net-zero targets, India requires significant private capital investments. The project will address sectoral risks and promote innovative financing platforms through IIFCL, leveraging private-sector resources. The initiative will also establish a sustainability unit, an environmental framework, and a scoring method for assessing project sustainability ratings.

ADB’s long-term collaboration with IIFCL has strengthened its operational and risk management capabilities, ensuring its alignment with global sustainability practices.