The government of India borrows from various international banks for various developmental works of the state and central government such as health services, road construction, irrigation projects, etc.
Also, the Government of India gives some grants for infrastructure development or any new projects of neighboring countries.
So,
In this post, I provided a month-wise list of Loan Agreements for India from Different Organizations in 2023. This topic came under Banking and economy current affairs.
Economic Current Affairs is an integral part of the latest Current Affairs in various competitive exams, especially the UPSC, Banking, and SSC exams. Therefore, it is important to stay informed about the latest economic developments, including the organizations that provide loans to India.
For example, the Asian Development Bank (ADB) approved a $USD 200 Million loan to India in 2023 to support the ongoing Rajasthan’s Secondary Towns Development Sector Project.
What is a Loan?
▪ Loan is a financial instrument that allows an individual, business, or government to borrow money from a lender or financial institution.
▪ The borrower agrees to repay the loan amount with interest over a specified period of time, usually in regular installments.
▪ Loans can be used for a variety of purposes, including financing the purchase of a home or car, starting a business, or paying for education or medical expenses.
▪ Loans can be secured, meaning they require collateral such as a home or car put up as security for the loan, or unsecured, meaning they require no collateral. Different types of loans include personal loans, business loans, student loans, and mortgages.
What are Grants?
▪ A grant is a type of financial aid or assistance that does not need to be repaid.
▪ Grants are typically awarded by governments, foundations, or other organizations to individuals, businesses, or nonprofit organizations for specific purposes.
▪ Grants can be used for a wide range of activities such as research, education, community development, environmental conservation, and social service.
▪ Grants can be awarded based on merit or need and can range in size from small amounts to millions of dollars. Unlike loans, grants do not have to be repaid, making them an attractive source of financing for those unable or unwilling to take out loans.
List of Loan Agreements for India from Different Organizations 2023 [January to December Month-wise List]
Loans and Grants Issued by Banks, October 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Asian Development Bank (ADB) | USD 400 Million | Government of India | To Improve infrastructure, guarantee reliable public services, and create effective government systems |
| Asian Development Bank (ADB) | USD 175 Million | Madhya Pradesh Government | The project will aims to improve about 500 kilometers of main roads in Madhya Pradesh (MP) by making them two lanes wide. |
| Asian Development Bank (ADB) | USD 181 Million | Government of Gujarat | to build quality infrastructure and services in the peri-urban areas of Ahmedabad, Gujarat to control urban sprawl. |
| India Infrastructure Finance Company Limited (IIFCL) | Rs 8,800 crore | India (IIFCL provides long-term loans for India’s infrastructure projects.) | The amount will be used for airports and civil aviation infrastructure development in India |
| Asian Development Bank (ADB) | USD 200 Million | Government of Assam | To strengthen flood and riverbank erosion risk management along the 650-kilometer (km) long main stem of the Brahmaputra River in Assam, India |
Loans and Grants Issued by Banks, September 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Asian Development Bank (ADB) | Rs 1.2 billion (USD 14.7 million) | Fourth Partner Energy Limited | For setting up a 25 MW open access solar power plant in Tirunelveli, Tamil Nadu |
| Export-Import Bank of India (EXIM Bank) | USD 100 million | REC, a subsidiary of Power Finance Corporation Ltd | The funds will be raised as part of REC’s broader market borrowing programme of Rs 1.20 lakh crore for 2023-24. |
Loans and Grants Issued by Banks, August 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Asian Development Bank (ADB) | USD 200 Million | Governemnt of India | for the ongoing Rajasthan Secondary Towns Development Sector Project as additional financing, to expand water supply and sanitation systems and enhance urban resilience and heritage living in selected towns. |
| Asian Development Bank (ADB) | USD 40.5 million | Meghalaya Early Childhood Development Mission (MECDM) | To upgared the Anganwadi centers (AWC) to provide nurturing care, including maternal mental health support and inclusive group-based parenting programs involving fathers |
| World Bank | Rs. 2500 crore | Government of West Bengal | For Infrastucture development Project in West Bengal |
Loans and Grants Issued by Banks, July 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| US International Development Finance Corp | USD 50 million | IIFL Home Finance (Home finance company) | To expand its portfolio of affordable home financing specifically targeting sustainable housing |
| European Investment Bank(EIB) | EURO 1 billion | Government of India | To support National Green Hydrogen and renewable energy projects in India |
| World Bank | $1.5 billion | Government of India | For the “First Low-Carbon Energy Programmatic Development Policy Operation” to accelerate India’s development of low-carbon energy |
| World Bank | $251 million | Assam | To improve access to high-quality healthcare services and boost economic opportunities for Assam |
| World Bank | $140 million | Tripura | Enhancing the Availability of Premium Healthcare Services and Catalyzing Economic Prospects for Tripura |
| Asian Development Bank (ADB) | $295-million | Bihar | To upgrade 265 km of state highways in Bihar |
| Asian Development Bank (ADB) | USD 200 million | Rajasthan | For the Rajasthan Secondary Towns Development Sector Project |
Loans and Grants Issued by Banks, June 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| World Bank | USD 255.5 Million | Government of India | The World Bank has provided the loan to India’s technical education sector with the objective of equipping students with essential skills to meet the changing demands of the job market, advancing gender equality, and encouraging research and innovation. |
| Asian Development Bank (ADB) | USD 295 million | Bihar | The allocated loan will be used to enhance transport connectivity and safety in Bihar by widening and upgrading approximately 265 kilometers of state highways. |
| World Bank | USD 150 million | Kerala | The loan amount has been utilized to support the Resilient Kerala Program, which aims to enhance Kerala’s preparedness against natural disasters, climate change impacts, disease outbreaks, and safeguard lives |
| Government of India | US$ 12.3 Billion | Africa | The loan amount has been utilized for diverse developmental projects in Africa, including initiatives related to irrigation, drinking water, and road infrastructure. |
| World Bank | $148M loan | West Bengal | The loan provided aims to assist West Bengal, India, in enhancing irrigation practices in rural areas. Its objective is to enable the region to utilize surface and groundwater resources more effectively for agricultural purposes. |
| Asian Development Bank (ADB) | USD 130 million | Himachal Pradesh | The loan has been allocated for the Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project. The project’s primary goals are to boost agricultural productivity, enhance irrigation accessibility, and foster horticulture agribusinesses, ultimately leading to increased income for farmers in Himachal Pradesh. |
Loans and Grants Issued by Banks, May 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Asian Development Bank (ADB) | USD($)141.12 million | Government of India | For the development of high-quality internal infrastructure such as roads, water supply systems and electricity distribution network in three industrial clusters in the state of Andhra Pradesh (AP). |
| World Bank | USD 82 million | Government of India | For the adoption of global best practices for animal health management and to prevent zoonotic diseases in India |
Loans and Grants Issued by Banks, April 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Japanese Banking Consortium [The Japan Bank for International Cooperation (“JBIC”), MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank Limited, Mizuho Bank Ltd., and Mizuho Bank Europe N.V.] | USD 5 billion | AMNS Luxembourg Holding S.A., the parent company of ArcelorMittal Nippon Steel India Limited (“AM/NS India”) | To finance a portion of the funds for AM/NS India’s new construction and expansion of upstream, hot rolling, and other facilities |
| World Bank | $363 million | Karnataka | To provide clean drinking water supply |
| World Bank | USD 100 million | Odisha | To help Odisha strengthen its early forecasting systems for improved disaster response |
Loans and Grants Issued by Banks March 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| World Bank | 1 billion (about Rs 8,200 crore) | Government of India | To support and enhance the country’s healthcare infrastructure |
| World Bank | USD 363 million | Karnataka | To provide clean drinking water supply to two million rural households in the state through a piped water connection in their homes. |
| World Bank | $500 million | Government of India | For the development of Green National Highway Corridors Project |
| Asian Development Bank (ADB) | Rs 754 crore | Waste-to-energy maker SAEL Industries | The funds will be used for the construction of five biomass power plants in Rajasthan |
| World Bank | USD 108 million | Assam | To help improve disaster preparedness and enhance flood forecasting |
| Government of India | Rs 2 billion Grant | Bhutan | Gyalsung Infra Project |
| World Bank | USD 100 million | Odisha | To boost Odisha’s early forecasting systems for better disaster response and to expand social protection coverage for poor and vulnerable households via digital platforms. |
Loans and Grants issued by Banks, February 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| International Monetary Fund (IMF) | USD 4.7 billion | Bangladesh | for robust economic recovery of Bangladesh from the pandemic which was interrupted by the Russia-Ukraine war leading to a widening of current account deficit and decline in foreign exchange reserve in the country. |
| Asian Development Bank (ADB) | USD 130 million | Himachal Pradesh | To increase agricultural productivity and promote horticulture agribusinesses |
| World Bank | USD 2.5 billion Grant | Ukraine | To maintain essential services and core government functions amid the on-going Russia-Ukraine war |
| Government Of India | Rs 5,300-crore Grant | Karnataka | e for the development of Upper Bhadra irrigation project. |
Loans and Grants issued by Banks, January 2023
| Bank/Organizations | Loan Amount | Received By | Purpose |
|---|---|---|---|
| Asian Development Bank (ADB) | USD 100 million (about Rs 830 crore) | Shriram Finance Limited (SFL) | The loan amount used for vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles, especially for women entrepreneurs in under-developed states |
| Union Bank of India (UBI) | Rs.10 lakhs | Garuda Aerospace Pvt Ltd | To built 150 Kisan Drones to help the farmers in the field of digitisation of land records and operations in crop production, spraying of fertilisers, chemicals, growth promoters and pesticides which helps farmers in growing their crop yield and improving their income. |
| Asian Development Bank (ADB) | $220 million | Government of India | For Tripura Power Distribution Strengthening and Generation Efficiency Improvement Project |
| Asian Development Bank (ADB) | USD 131 million | Nhava Sheva Freeport Terminal Private Limited (NSFTPL) | To upgrade the Jawaharlal Nehru (JLN) Port Container Terminal located in Navi Mumbai, Maharashtra. |
Organization-wise Loan Agreements for India
Loan Agreements for India from the Asian Development Bank (ADB)
| Loan Amount | Received By | Purpose |
|---|---|---|
| US$400 Million | India | To Improve infrastructure, guarantee reliable public services, and create effective government systems |
| US$ 175 Million | Madhya Pradesh Government | The project will aims to improve about 500 kilometers of main roads in Madhya Pradesh (MP) by making them two lanes wide. |
| US$ 181 Million | Government of Gujarat | to build quality infrastructure and services in the peri-urban areas of Ahmedabad, Gujarat to control urban sprawl. |
| US$ 200 Million | Government of Assam | To strengthen flood and riverbank erosion risk management along the 650-kilometer (km) long main stem of the Brahmaputra River in Assam, India |
| USD 100 million (about Rs 830 crore) | Shriram Finance Limited (SFL) of India | The loan amount used for vehicle finance for commercial purposes for BS VI compliant vehicles and electric vehicles, especially for women entrepreneurs in under-developed states |
| US $220 million | Government of India | For Tripura Power Distribution Strengthening and Generation Efficiency Improvement Project |
| USD 131 million | Nhava Sheva Freeport Terminal Private Limited (NSFTPL) | To upgrade the Jawaharlal Nehru (JLN) Port Container Terminal located in Navi Mumbai, Maharashtra. |
| USD 130 million | Himachal Pradesh | To increase agricultural productivity and promote horticulture agribusinesses |
| USD 90.56 Million (Rs. 754 crore) | Waste-to-energy maker SAEL Industries | The funds will be used for the construction of five biomass power plants in Rajasthan |
| USD($)141.12 Million | Government of India | For the development of high-quality internal infrastructure such as roads, water supply systems and electricity distribution network in three industrial clusters in the state of Andhra Pradesh (AP). |
| USD 295 Million | Government of Bihar | The allocated loan will be used to enhance transport connectivity and safety in Bihar by widening and upgrading approximately 265 kilometers of state highways. |
| USD 130 Million | Himachal Pradesh Government | The loan has been allocated for the Himachal Pradesh Subtropical Horticulture, Irrigation, and Value Addition Project. The project’s primary goals are to boost agricultural productivity, enhance irrigation accessibility, and foster horticulture agribusinesses, ultimately leading to increased income for farmers in Himachal Pradesh. |
| USD 29 Million | Bihar Government | To upgrade 265 km of state highways in Bihar |
| USD 200 Million | Government of Rajasthan | For the Rajasthan Secondary Towns Development Sector Project |
| USD 200 Million | Governemnt of India | for the ongoing Rajasthan Secondary Towns Development Sector Project as additional financing, to expand water supply and sanitation systems and enhance urban resilience and heritage living in selected towns. |
| USD 40.5 Million | Meghalaya Early Childhood Development Mission (MECDM) | To upgared the Anganwadi centers (AWC) to provide nurturing care, including maternal mental health support and inclusive group-based parenting programs involving fathers |
| Rs 1.2 Billion (USD 14.7 million) | Fourth Partner Energy Limited | For setting up a 25 MW open access solar power plant in Tirunelveli, Tamil Nadu |
Loan Agreements for India from the World Bank (WB)
| Loan Amount | Received By | Purpose |
|---|---|---|
| USD 2.5 Billion Grant | Ukraine Government | To maintain essential services and core government functions amid the on-going Russia-Ukraine war |
| USD 100 Million | Government of Odisha | To boost Odisha’s early forecasting systems for better disaster response and to expand social protection coverage for poor and vulnerable households via digital platforms. |
| USD 108 Million | Government of Assam | To help improve disaster preparedness and enhance flood forecasting |
| US $500 million | Government of India | For the development of Green National Highway Corridors Project |
| USD 363 Million | Government of Karnataka | To provide clean drinking water supply to two million rural households in the state through a piped water connection in their homes. |
| 1 Billion USD (about Rs 8,200 crore) | Government of India | To support and enhance the India’s healthcare infrastructure |
| 363 Million USD | Government of Karnataka | To provide clean drinking water supply in the states of Karnataka |
| USD 100 Million | Government of Odisha | To help Odisha strengthen its early forecasting systems for improved disaster response |
| USD 82 Million | Government of India | For the adoption of global best practices for animal health management and to prevent zoonotic diseases in India |
| USD 255.5 Million | Government of India | The World Bank has provided the loan to India’s technical education sector with the objective of equipping students with essential skills to meet the changing demands of the job market, advancing gender equality, and encouraging research and innovation. |
| USD 150 Million | Government of Kerala | The loan amount has been utilized to support the Resilient Kerala Program, which aims to enhance Kerala’s preparedness against natural disasters, climate change impacts, disease outbreaks, and safeguard lives |
| USD 148 Million | Government of West Bengal | The loan provided aims to assist West Bengal, India, in enhancing irrigation practices in rural areas. Its objective is to enable the region to utilize surface and groundwater resources more effectively for agricultural purposes. |
| USD 1.5 Billion | Government of India | For the “First Low-Carbon Energy Programmatic Development Policy Operation” to accelerate India’s development of low-carbon energy |
| 251 Million USD | Government of Assam | To improve access to high-quality healthcare services and boost economic opportunities for Assam |
| 140 Million USD | Government of Tripura | Enhancing the Availability of Premium Healthcare Services and Catalyzing Economic Prospects for Tripura |
| 296.75 million US dollars (USD) (Rs. 2500 crore) | Government of West Bengal | For Infrastucture development Project in West Bengal |
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