BRICS bank will support infrastructure and sustainable development: Sitaraman

The BRICS Development Bank, proposed to be set up by Brazil, Russia, India, China and South Africa (BRICS) at their summit held in Fortaleza, Brazil on 15 July, aims to utilise resources at the disposal of these countries to support infrastructure and sustainable development projects, public or private, minister of state for finance Nirmala Sitharaman informed the Lok Sabha in a written reply today.

She said the bank would support projects in the BRICS and other emerging market economies and developing countries, through provision of loans, guarantees, equity participation and other financial instruments.

The major objectives behind setting-up this Bank are:

• To cooperate as the bank may deem appropriate, within its mandate, with international organisations, as well as national entities whether public or private, in particular with international financial institutions and national development banks; and
• To provide technical assistance for the preparation and implementation of infrastructure and sustainable development projects to be supported by the bank.

The bank will be an additional source of long-term finance for infrastructure projects in India. In addition, such a bank will also be instrumental for increasing economic cooperation among BRICS countries, which will ensure more productive use of resources among BRICS countries, including India, she said.

The bank will be established after each signatory country has deposited with the government of the Federative Republic of Brazil an instrument setting forth that it has accepted, ratified or approved this agreement in accordance with its own laws.

The designated signatories of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People's Republic of China and the Republic of South Africa signed the Inter-Governmental Agreement on 15 July 2014 at Fortaleza Brazil, to establish the New Development Bank.