Centre, AIIB sign $750 Million agreement for COVID-19 support for India

The Ministry of Finance on Friday announced that the Government of India and multilateral financial institution Asian Infrastructure Investment bank (AIIB) signed an agreement for USD 750 million COVID-19 assistance to India.

"The Government of India and the Asian Infrastructure Investment Bank (AIIB) here today signed a $750 million "COVID-19 Active Response and Expenditure Support Programme" to assist India to strengthen its response to the adverse impacts of the COVID-19 pandemic on poor and vulnerable households. This is the first-ever budgetary support program from the AIIB to India," said the Ministry of Finance.

The agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Rajat Misra, Director General (Acting), on behalf of the AIIB.

Khare said, "We thank AIIB's assistance for the government's immediate response to the coronavirus pandemic to provide social assistance for compensating economic loss to vulnerable sections including women and social security measures enhanced for affected workers in both orgsed and informal sectors. AIIB's timely financial support will contribute to the effective implementation of the government's COVID-19 Emergency Response Programme."

The ministry said that the program will provide the centre "with budget support to mitigate the severe adverse social and economic impact of COVID-19".

The Finance Ministry added: "The current loan will be the second to India from AIIB under its COVID-19 crisis recovery facility apart from the earlier approved $500 million loan for the COVID-19 Emergency Response and Health Systems Preparedness Project."

The primary programme beneficiaries would be families below the poverty line, farmers, healthcare workers, women, women's self-help groups, widows, people with disabilities, senior citizens, low wage earners, construction workers and other vulnerable groups, informed the finance ministry.

( With inputs from ANI )