The Shanghai-based New Development Bank has agreed to extend a loan of Rs 6,000 crore to Andhra Pradesh for taking up various social infrastructure projects in the state.
According to an official press release from Andhra Pradesh chief minister’s office on Thursday night, a delegation of the NDB headed by vice-president N Jong and project head Rajpurkar met chief minister Y S Jagan Mohan Reddy at his camp office at Tadepalli and discussed the lending proposals.
After the discussions, the NDB representatives gave an in-principle approval for sanctioning the loan. “The delegates assured the chief minister that the project would be approved soon. The loan will be repaid in a span of 32 years,” the CMO release said.
Jagan sought more assistance from the NDB to enable the State to complete its prestigious projects, which would require an additional loan amount of Rs 25,000 crore.
The amount disbursed will be used for social infrastructure projects, such as building of hospitals, schools and supply of clean drinking water to the rural areas, besides other infrastructure development projects.
The New Development Bank was set up in 2015 by BRICS nations. The bank has so far lent over Rs 75,000 crore to various projects till date across the world, including Rs 25,000 crore to India alone, the CMO release said.