India on right track: ADB President

Hyderabad, Mar 9 (UNI) Complimenting India for being on the right track in facilitating investment in infrastructure to support broad-based inclusive growth, Asian Development Bank(ADB) President Huruhiko Kuroda today said the Bank was considering expansion of the local currency lending to borrowners in India's infrastructure and Fiancial sectors.

Delivering a lecture "investing in infrastructure:key to economic growth" at the Administrative Staff College here, he said with the launch of ADB's rupee-denominated bond issue in February 2004, India became the first developing member country to access ADB local currency lending.

He said several borrowers in the country's financial and infrastructure sectors had indicated a desire to borrow long term rupee from ADB.

''We will explore the scope of expanding local currency lending in consultation with the Government'', he said Expressing confidence that the public and private sectors, working in partnership and in collaboration with development agencies would be able to bring about significant and sustainable improvements in India's infrastructure, which would also help the overall process of growth, he said ''growth is the best antidote to poverty and ADB was pleased to be India's partner in this worthy endeavour.

''Apart from traditional lending modalities (LIBOR plus a spread), we will now offer non-recourse lending to public agencies provided certain basic financial conditions are met'', he said.

Making it clear that there was no no single blueprint or approach for attracting private investments in infrastructure, he observed ''given the complexities inherent in large infrastructure investments, the participation by the private sector will naturally be a learning process''.

However, involvement of external agencies such as ADB can reinforce the intiatives being taken by the Government and help to leverage additional investment, he said.

ADB was uniquely positioned to leverage private funds for large investment needs and to promote partnerships between private and public entities, he said.

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