The survival of the startup that drove financial inclusion in the country and boosted the nation’s economy is now at stake
The BRICS New Development Bank (NDB) has announced that it has approved a $500 million loan to finance rural road projects in the Indian state of Gujarat.
According to the bank, the funds will be used for the Mukhyamantri Gram Sadak Yojana, a scheme launched in 2010-11 to improve connectivity in rural areas. NDB said it will support state road construction departments in India using a variety of materials including geosynthetics, geotextiles, geogrids and lime stabilization for a total road length of 1,200 km.
The report also says that weather-friendly roads will be built with an emphasis on environmental protection. The NDB was established in 2014 by Brazil, Russia, India, China and South Africa to finance infrastructure and sustainable development projects. The bank was officially launched in 2015 and has since been joined by Bangladesh, the United Arab Emirates, Egypt and Uruguay. Saudi Arabia is also discussing joining.
In May 2022, NDB is establishing a regional office for India at Gujarat International Finance Tec City to address infrastructure and sustainable development needs in India and Bangladesh and contribute to economic growth and sustainable development in South Asia.