The Government of India and New Development Bank today signed a loan agreement for one thousand million dollars to provide support to Aatma Nirbhar Bharat Abhiyan through MGNREG Scheme.
Significance of the agreement
- It will support the Government in mitigating the adverse economic impact of COVID-19 pandemic and enable economic recovery in the rural areas through Natural Resource Management (NRM) works.
- This will facilitate economic activity and employment generation to stimulate rural demand, to combat the decline in economic activity due to outbreak of COVID-19.
- The programme proposes creation of durable rural infrastructure assets relating to NRM and generation of employment opportunities for rural poor, especially migrant workers who have returned from urban areas and have lost their livelihoods due to the COVID-19 pandemic.
About the New Development Bank
The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa)
- At the fourth BRICS Summit in New Delhi (2012), the leaders of Brazil, Russia, India, China and South Africa considered the possibility of setting up a new Development Bank to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies, as well as in developing countries
- At the fifth BRICS summit in Durban (2013), the leaders agreed on the feasibility of establishing the New Development Bank and made the decision to do so
- During the sixth BRICS Summit in Fortaleza (2014), the leaders signed the Agreement establishing the New Development Bank (NDB).
Fortaleza declaration on NDB 2014
- The Bank shall have an initial authorized capital of US$ 100 billion. (each BRICS countries have equal share and equal voting rights)
- The initial subscribed capital shall be US$ 50 billion, equally shared among founding members.
- The first chair of the Board of Governors shall be from Russia.
- The first chair of the Board of Directors shall be from Brazil.
- The first President of the Bank shall be from India.
- The headquarters of the Bank shall be located in Shanghai.
- The New Development Bank Africa Regional Center shall be established in South Africa concurrently with the headquarters.