ADB keen on partnering India’s East Coast Industrial Corridor project

The Asian Development Bank (ADB) on Wednesday said it was very keen on partnering in the proposed East Coast Industrial Corridor project and supporting smart cities.

It called for an improved regulatory system in India in order to make doing business in the country easier.

ADB president Takehiko Nakao, who called on Prime Minister Narendra Modi on Wednesday, said the bank is planning to lend up to $9 billion to India over the next three years to aid in infrastructure development, manufacturing, skill development and expanding trade.

''ADB's operations for India will maintain high level of lending, amounting to a total of $7 billion - $ 9 billion over the next three years,'' Nakao later told a press conference.

The multilateral funding agency will also provide around $30 million for technical assistance grants, especially for building institutions and capacity at the state as well as local levels.

India is ADB's largest borrower.

During his two-day visit, Nakao met Prime Minister Narendra Modi and finance minister Arun Jaitley and discussed the macroeconomic situation and ADB's funding.

Prime Minister Narendra Mondi, on his part, asked for additional assistance for regional connectivity projects, which will help the whole region. He also wanted the assistance to be additional to current levels of assistance.

He asked the ADB to pick up large demonstration projects and demonstrate breakthroughs which then can be rapidly copied.

The ADB president said India has great potential to grow faster and ADB will be supporting India to reach that potential. ''The population of India is its biggest plus point and as the cost of manufacturing goes up in other countries, India can capitalise on this for promoting manufacturing,'' he said.

The prime minister remarked that he has had a good experience with ADB in Gujarat in the earthquake reconstruction. He wanted ADB to be a partner in India's progress. He asked ADB to think differently so that it can make an impact.

Nakao said he was impressed by Narendra Modi's Independence Day speech, in which he emphasised the need for change - `removing silos within government, improving co-ordination and focusing on results.

He said he was also trying to do the same in ADB although it is a much smaller organisation. To which, Modi remarked that his mindset and the ADB president`s mindset are the same.